Bonds are a form of ________, with bond prices and interest rates that move in _________ .

a.equity; the same direction

b.equity; opposite directions

c.debt; the same direction

d.debt; opposite directions

e.equity/debt split; sometimes the same direction and sometimes opposite directions

If the yield to maturity on a bond is greater than its coupon rate, then

a.the corresponding bond price will be greater than its par (face) value.

b.the corresponding bond price will be equal to its par (face) value.

c.the corresponding bond price will be less than its par (face) value.

d.the corresponding stock price will be greater than the bond price.

e.the corresponding stock price will be less than the bond price.

Suppose that an investor is willing to tolerate relatively higher asset price risk or volatility in order to seek relatively higher average annual rates of return mainly through capital gains over a long-term time horizon. Then the investor should seek a __________ mutual fund, generally made up of stocks of ________ firms.

a.growth; large-cap

b.growth; small-cap

c.income; large-cap

d.income; small-cap

e.balanced; government