Both questions

QUESTION 5 Which of the following statements is CORRECT? a. A zero coupon bond's current yield is equal to its yield to maturity b. If a bond's yield to maturity exceeds its coupon rate, the bond will sell at a premium over par c. If a bond's yield to maturity exceeds its coupon rate, the bond will sell at par d. All else equal, if a bond's yield to maturity increases, its current yield will fall. Oe. All else equal, if a bond's yield to maturity increases, its price will fall. QUESTION 6 Assume that interest rates on 20-year Treasury and corporate bonds are as follows: T-bond-7.72% AAA = 8.72% A 9.64% BBB 10.18% The differences in these rates were probably caused primarily by: O a. Maturity risk differences. Ob. Real risk-free rate differences. c. Inflation differences d. Tax effects. e. Default and liquidity risk differences. Click Save and Submit to save and submit. Click Save All Answers to save all answers