Question 1: A risk-seeking investor

A. prefers more risk to less

B. is one that dislikes risk

C. has no preference regarding risk

D. None of the above

Question 2: A putable bond

A. gives the issuers the right to redeem all or part of a bond issue at a specific price (call price)

B. gives the bondholders the right to sell the bond back to the issuing company at a prespecified price

C. gives bondholders the option to exchange the bond for a specific number of shares of the issuing corporations common stock

D. None of the above

Question 3: Which of the following is least likely correct?

A. At a point in time, a decrease (increase) in a bonds YTM will increase (decrease) its price

B. If a bonds coupon rate is less than its YTM, its price will be at a discount to par value

C. The percentage decrease in value when the YTM increases by a given amount is smaller than the increase in value when the YTM decreases by the same amount

D. None of the above