Question $12$

The following statements are true for the bond valuation Except for:

a$.$ There is negative relationship between market interest rate $($i$)$ and bond price

b$.$ The long the maturity the lower the bond price is$.$

c$.$ The higher the market interest rate the lower the bond price

d$.$ The higher the coupon interest rate the lower the bond price is

Question$13$

The following statement $($s$)$ true for the bond valuation

a$.$ The bond with coupon rate of the $10\%$ and market interest rate of $10\%$ will be sold at par value $($face value$)$

b$.$ The bond with coupon rate of the $10\%$ and market interest rate of $11\%$ will be sold at discount

c$.$ The bond with coupon rate of the $10\%$ and market interest rate of $9\%$ will be sold at discount

d$.$ Both answer a and $c$ are correct

Question $4$

A bond with $5$ year to maturity with the face value of $$1000$ and the coupon interest rate of $10\%.$ If the market interest rate for similar bond are yielding $10\%,$ the bond price is estimated to be:

a$.1000$

b$.$ More than $1000$

c$.$ Less than $1000$

d$.$ None of the answer is correct.