QUESTION 35

1. What is the current yield of a bond with a 5% coupon rate paid annually, a face value of $1,000, and 10 years to maturity if prevailing interest rates on similar bonds is 3%?

   		5.14%
   		4.62%
   		3%
   		4.27%

QUESTION 36

1. What is the price of a bond with a 5% coupon rate paid annually, a face value of $1,000, and 10 years to maturity if prevailing interest rates on similar bonds is 4%?

   		$1000
   		$1081.10
   		$1170.60
   		$856.36

2 pointsQUESTION 37

1. What is the current yield of a bond with a 5% coupon rate paid annually, a face value of $1,000, and 10 years to maturity if prevailing interest rates on similar bonds is 4%?

   		5.14%
   		4.62%
   		4.27%
   		3%

QUESTION 38

1. Bondholders usually have capital gains when interest rates are rising.

   		False
   		True

QUESTION 39

1. An open-end investment company

   		is involved in all trades of its shares.
   		has a set number of shares.
   		sells shares at a discounted NAV price.
   		trades like a stock on the exchanges.