Question 11 (1 point) Suppose an investment dealer buys a large quantity of high-quality bonds and separates the individual future-dated interest coupons from the underlying bond's principal payment. The dealer then sells each coupon and the principal as separate bonds. What is the term used to describe these resulting bonds? O a) Strip bonds. Ob) Debentures. c) Collateral trust bonds. d) Subordinated bonds. Previous Page Next Page Page 11 of 34 Previous Page Previous Pape Next Page Page 10 of 34 Page 12 of question 10 (1 point) Select the correct statement about bond pricing principles. There is no relationship between yields, coupon rates, and the market price of question 12 (1 point) When implementing monetary policy to combat inflation, what is the Bank of Canada's target rate for the overnight interest rate? al a bond. O O a) The mid-point of the operating band. b) The lower limit of the operating band. b) A bond sells at a premium when its yield is less than its coupon rate. c) A bond sells at a discount when its yield is less than its coupon rate. d) A bond sells at a premiut when its yield is higher than its coupon rate. The upper limit of the operating band. O d) The Bank Rate. Page 10 of 34 Previous Page Next Page Previous Page Next Page PIC.COLLAGE