Question
Answer all of these questions with the right question number next to the correct choice. ANSWER ALL OR NONE 7-You notice that the price of
Answer all of these questions with the right question number next to the correct choice. ANSWER ALL OR NONE
7-You notice that the price of XYZ corporate bonds are selling at $529 more than their par value. You conclude that the market rate must have ____ since the bonds' initial offer.
A)Risen
B)there is an inverse relationship between par values and price
C)Fallen
D)Can not be known for sure from the information given
9-Which of the following are correct statements about the relationship among price, ROR (rate of return), and risk?
A)All of the other statements are correct
B)The price of AAA bond should be lower than the price of a Treasury security of the same maturity.
C)The price of a AAA bond should be higher than the price of a BBB bond.
D)The ROR on a AAA bond should be lower than the ROR on a BBB bond.
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