8 Which enes of the following statements are FALSE L The yield ourve depicts the cument relationship between bond yiclds and default risk Il. The yield ourve depicts the default risk of bonds of diffeent maturitios III. The most common shape for the yield curve is downward sloping A. and II only B. and III only C Il and III only D. 1, 1, and III 9) Today yo. purchase a 4% coupon rate, 10-years Treasury Inflation Protected Security (TIPS) at its par value of $1,000. In the nes1 2 years the CPI increases by 5% per year; al that point." A. thepar value of the bond will be $1,102.5 and the coupon payments $40 per year B. the par valuc of the bond will be SI.1025 and the coupon paymmts $44.1 pr year C the par valuc of the bond will be $1,000 and the coupon payments $44.1 per year D the par value of the bond will be $1,050 and the coupoe paymens $42 per year 10) If an invester parchases a bond when its current yield is lower than the ceupon rate, then the investor will necessarily experience a negative retun holding the bond to maturity the imvestce expects the boed's price to increase over tme, reachng p value a maturity C. the investor is accepting a high probability that bond will dcfa D. the investor is accepting a YTM lower than the bond's coupon rate. 11) What is the coupon rate for a bond with 6years unti maturity, a price of$125378 and ayield to maturity of 5%? Interest paid annually, par value is $1,000, A, 5% B.8% C. 0% D. It cannot be determined with the available information