Click to watch the Concept Clip Investor Bond Price Risk video and then answer the questions below. 1. What happens to the prices of bonds as the market rate of interest increases? a. Doubles b. Decreases C. Increases d. Stays the same 2. Why do long-term bonds typically have higher coupon rates shorter-term bonds? a. They have a higher rate of return. b. They are a lower tax risk. C More investors want to buy them. d. They are nsker investments. v Check My Work ORI Click to watch the Concept Clip Bond Ratings video and then answer the questions below. 1. What is the likelihood of default with regard to the purchase of bonds? a the likelihood that the bond issuer will not be able to repay bond principal and associated interest b. the likelihood that the investor will not be able to pay for the bond C. the likelihood that the broker will not be able to offer the bond for sale d. none of these 2. A high-yield (or HY) bond is a, a lesser-quality bond. b. also known as a noninvestment grade bond. c. at a higher risk of default. d. all of these 3. Which of the following reviews and grades the company issuing the bond in terms of how financially sound it is? a independent rating agencies b. Standard and Poor's rating agency c. both of these d. neither of these Check My Work Click to watch the Tell Me More Learning Objective 1 video and then answer the questions bel 1. The interest rate to be paid on the face amount of the bond is called the a. contract rate. b. effective rate. c. discount rate. d. premium. 2. A $1,000 bond quoted at would be purchased or sold at a discount. a. 110 b. 100 C. 98 d. 105 Check My Work