a-False/False

b- True/ True

c- False/True

d-True/False

A bond has a coupon rate that is lower than the going market rate (the interest rate that investors could expect from a similar bonds market). How is this bond likely to be priced? Seleccione una: The going market rate has no effect on the bond's price. O At par. O At a discount O At a premium () At the beginning of a financial crisis, the FED will both conduct open market sales and raise the interest it pays on excess reserves until the federal funds rate reaches zero. (II) The monetary tools used by the European Central Bank are similar to those used by the FED. Seleccione una: (1) Falso: (II) Falso O () Cierto; (II) Cierto (1) Falso; (II) Cierto O (O) Cierto; (II) Falso The extraordinary increase in housing prices experienced in the US before 2007, and its subsequent drastic decline demonstrated that prices in the US housing sector constituted a/an that Seleccione una: irrational bubble; not caused severe damage to the financial system when it finally burst irrational bubble caused severe damage the financial system when it finally burst. credit-driven bubble; not caused severe damage to the financial system when it finally burst credit-driven bubble; caused severe damage to the financial system when it finally burst PREGUNTA: Write the name of bonds whose interest and principal payments are adjusted for changes in the price level