EC300 Homework 5 (Due date: Thursday, October 8) 1. Which has greater interest rate risk, a) a 30-year Treasury bond or b) a 30- year BB corporate bond? Choose a) or b). 2. With regard to bid and ask prices on a Treasury bond, is it possible for the bid price to be higher? 3. True or False) If the coupon rate is higher than the required return on a bond, the bond will sell at a discount. 4. App Store Co. issued 20-year bonds one year ago at a coupon rate of 6.1%. The bonds make semiannual payments. If the YTM on these bonds is 5.3% what is the current bond price