Investors require _____ returns on riskier securities.Consequently, a high-risk security will have a _____ value than a low-risk security even if both securities have the same expected cash flows.

A) lower; lower

B) lower; higher

C) higher; higher

D) higher; lower

Bonds that sell at a price below their par value are called _____ bonds. The larger the investors required rate of return relative to the coupon rate, the _____ the discount of a bond with a particular par value.

A) private placement; larger

B) discount; smaller

C) discount; larger

D) private placement; smaller