ORAMER 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? 14. All other things being equal, if it was a 3-year bond, the interest rate risk would be smaller. TRUE or FALSE? 15. All other things being equal, if the coupon rate was lower, the interest rate risk would be greater. TRUE or FALSE? 16. Is 30-year APPLE bond an equity security or a debt security? 17. What are the main differences between debt and equity? 18. Collateral is secured by financial securities. TRUE or FALSE? 19. Mortgage is secured by real property such as land or building. TRUE or FALSE? 20. Bond type above is US Corporate Debenture? What is debenture? What kind of information can be found on it? 21. Debt type above is Senior Unsecured. Explain seniority. 22. What is the difference between registered form and bearer form of bonds? 23. Above is a callable bond. What does it mean? 24. Give examples of positive and negative covenants. 25. Give examples of government bonds. 26. What is zero coupon bond? Give example. 27. What is floating-rate bond? Give example. 28. What is the nominal rate and real rate on an investment? What is the Fisher effect