If a bond's yield to maturity increases, A. the bond's market price decreases. B. the bond's market price increases. C. the bond's market price may decrease or increase. D. the bond's coupon rate decreases. E. the bond's coupon rate increases.

19. Which of the following is true? A. A bond's price increases as it approaches maturity. B. The shorter a bond has to maturity, the less sensitive the bond's price is to changes in market interest rates. C. The longer a bond has to maturity, the more sensitive the bond's price is to changes in market interest rates. D. B and C only E. A, B, and C

F. None of the above.

Which of the following would decrease risk to the bondholder? A. A junk bond. B. A change in bond rating from BB to A. C. Subordinated securities. D. A debenture.

E. All of the above. F. None of the above.

21. Which of the following is true? A. Creditors of the corporation generally have voting power. B. Dividends paid to stockholders are tax deductible. C. The possibility of bankruptcy does not arise when equity is issued. D. Dividends and unpaid debt are liabilities of the firm.

E. All of the above. F. None of the above.