9a. Which of the following do not increase a bonds volatility:

Select one:

a. a bond rating of AA vs. Ba

b. reaching junk status due to higher risk

c. a small coupon rate

d. a longer time to maturity

e. an increased default risk

9b. Which of the following statements about bond calls is accurate:

Select one:

a. a company will most likely call its bonds when market rates have risen dramatically

b. a company will most likely call its bonds if market rates are well above the coupon rate

c. a company will not call its bonds if its price is well above face value

d. a company will most likely call its bonds when its yield is well below its coupon rate

e. a company must call its bonds prior to the call date