Question
Investors demand a higher rate of return on bonds with higher bond ratings. a. True b. False Which of the following starts off with the
Investors demand a higher rate of return on bonds with higher bond ratings. a. True b. False Which of the following starts off with the highest risk bond and ends with the lowest risk bond? a. Corporate, Junk, Municipal, Treasury b. Corporate, Junk, Treasury, Municipal c. Junk, Corporate, Municipal, Treasury d. Municipal, Corporate, Treasury, Junk Interest rate risk says that if market interest rates rise the price of outstanding bonds will fall. This means that interest rates and bond prices have an relationship? a. Par b. Lock-step c. Exchange rate d. Inverse Which characteristic is applied to secured loans? a. They are backed with either physical or investment assets. b. b. They are typically easier to get. c. All are correct. d. Interest rates tend to be lower than unsecured loans. e. They reduce the lender's risk. Bonds that do not pay interest are known as no-load bonds. a. False b. True
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