answers for 14-19

Unit 16.2 Bonds 14. Municipal bonds are often in denominations of $5,000. ( T or F ) 15. All bonds pay regular interest checks. (T or F ) 16. Interest from corporate bonds is taxable. ( T or F ) 17. Bonds with a high degree of risk often pay a lower-than-normal interest rate. ( T or F) For Problems 18 and 19, assume you own a 25-year 7\% bond that pays interest annually and matures in 18 years. You are thinking about selling the bond. 18. If the rate for similar bonds is 8.5%, buyers should be willing to pay a premium for your bond. ( T or F ) 19. If the rate for similar bonds is 7%, your bond will be priced at (a) par, (b) a discount, or (c) a premium