A bond maturing in 7years at a par value of $1,000has a coupon rate of 6%and current yield of 7%.What is the price of the bond?

A.$912.36

B.$945.40

C.$1,024.56

D.$1,089.72

A bond currently trades at $1,045.00and has a face value of $1,000.If the annualyield is 6% and the bond has 19 years to maturity, what is its coupon rate?

A.6.10%

B.6.20%

C.6.40%

D.6.70%

A bond maturing in 15years at a par value of $1,000has a coupon rate of 7.5%and current market price of $1,145.68.If the bond is callable after 9years at $1,095,what is the bond's yield to call?

A.6.17%

B.6.57%

C.7.23%

D.7.46%

If the interest rates on the 6-month T-bills are 3.25%and on the 10-year T-bonds are 2.85%,the result would be:

A.normal yield curve

B.upward-sloping yield curve

C.flat yield curve

D.inverted yield curve

The slopeof the yield curve depends primarily on expectations about:

A.future inflation

B.future stock market performance

C.future political elections

D.future corporate earnings

The risk that a decline in interest rates will lead to a decline in income from a portfolio is known as:

A.default risk

B.reinvestment risk

C.credit risk

D.business risk

Long-term debt securities that are not secured by a mortgage on a specific property are known as:

A.debentures

B.preferred stock

C.callable bonds

D.munis

The two main credit rating agencies are:

A.Moody's &NASDAQ

B.S&P and Dow Jones

C.NASDAQ and Dow Jones

D.Moody's and S&P

Many banks and other institutional investors are often only permitted to invest in:

A.high-yield bonds

B.investment-grade bonds

C.high-risk bonds

D.junk bonds

High-yield bonds are also referred to as:

A.junk bonds

B.investment-grade bonds

C.municipal bonds

D.treasury bonds