a. 3) How does the presence of a call feature affect a bond's price? Price gains are limited when YTM falls b. Price losses are limited when YTM increases Overall bond price is higher relative to a bond without a call feature d. Bond price is not affected by a call feature C. 4) All else equal, which of the following result in greater price sensitivity (i.e. duration)? a. Higher Coupon Rate b. Shorter Time to Maturity Lower Yield to Maturity d. All of the above C. 5) If a bond has an annual coupon rate of 8% and a yield to maturity of 8%, it will be selling: a. At a premium b. At a discount C. At par d. At maturity 6) Which of the following is best defined as "returns above what is anticipated according to CAPM? a. Excess Return b. Alpha C. Beta d. Sharpe Ratio a. 7) In CAPM, which of the following prices the systematic risk of a stock as if it were to be added to an existing well-diversified portfolio? Excess Return b. Alpha Beta d. Sharpe Ratio C