Q1. A rule of thumb is to move money from stocks to bonds as one gets older, or anytime one's tolerance for risk drops. However, this practice is risky if interest rates are unusually low. The practice is particularly risky if one invests in a bond mutual fund with a duration of 10 or more. If rates rise one percentage point, the bond fund value with a D of 10 could fall approximately 10 percent.

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Q2. For a coupon bond or note, the YTM is the discount rate that sets the present value of the future cash flows equal to the price. So, if you know the price of the bond or note and the promised cash flows, you can calculate the YTM. Group of answer choices

true/false

Q3. If you purchase a bond or note that pays a relatively high interest rate you must be aware of the possibility that it will be called away if rates decline significantly.

true/false