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Question 41 15 pts [41] The mathematical expression ON-Po Po expresses the return on a single-payment credit instrument as a ratio of interest to principal.

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Question 41 15 pts [41] The mathematical expression ON-Po Po expresses the return on a single-payment credit instrument as a ratio of interest to principal. O is the formula for the annual rate of return on a single-payment credit instrument. O solves the problem of adjusting the return ratio for term differences. O All of the above. Question 42 15 pts [42] In my lectures and notes, I made the point that a credit instrument's nominal interest rate O plays the role of its unit price in the credit market. O fails to adjust for differences in the terms of credit instruments. O is a type of annual growth rate. O is chosen by the issuer of a credit instrument. Question 43 15 pts [43] The market price of a bond is most similar to the in a transaction in the goods market. O amount paid for the goods O unit price of the goods amount of goods purchased O quality of the goods Question 44 15 pts [44] The mathematical expression {C1, C2, C3, ... ; CN} represents your guesses at the price of a credit instrument when you use the internal rate of return method to calculate its interest rate. the secondary market prices of a credit instrument if it is sold at different dates. O the payments on a multiple payment credit instrument, year by year. O the interest payments on a coupon bond. Question 45 15 pts [45] A coupon bond with a coupon rate equal to the market interest rate will trade at a discount if its face value is less than five times as large as its coupon payments. its term exceeds ten years. O it is issued by the U.S. Treasury Department. O there is a significant chance of a default by its issuer

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