Fill in blanks using for 1-8: interest-only loan, par value, $1000, bonds, maturity, yield to maturity(YTM), coupon rate, coupon 1. When a corporation or government wishes to borrow money from the public on a long-term basis, it usually does so by issuing or selling debt securities that are generically called 2.A bond is normally an meaning that the borrower will pay the interest every period, but none of the principal will be repaid until the end of the loan. 3. is the stated interest payment made on a bond. 4. The amount that will be repaid at the end of the loan is called the bond's face value, or 5.Par value is usually _ for corporate bonds, and a bond that sells for its par value is called a par value bond. 6.The annual coupon divided by the face value is called the on the bond. 7. The number of years until the face value is paid is called the bond's time to 8. The interest rate required in the market on a bond is called the bond's This rate is sometimes called the bond's yield for short. 9. If YTM = coupon rate, then bond price = par value TRUE or FALSE? 10. If YTM > coupon rate, then bond price par value TRUE or FALSE? 12. As a result of fluctuating (market) interest rate, bond owners are exposed to interest rate risk. See the price chart for 30-year APPLE bond. Is the price of the bond sensitive to interest rate changes? 13. In the graph below, which bond is more sensitive to interest rate changes? 2.000 $176962 30 year band 6 1500 310477 1 year bond 1.000 $986.67