QUESTION 6 O For most bonds, if the price of the bond increases: O a. the coupon rate increases O b.coupon payments stop O c. the coupon rate remains the same O d. the coupon rate decreases QUESTION 7 If a bond is trading at a premium then over time: O a. the yield to maturity is expected to fall O b. the bond price is expected to fall O c. the bond price is expected to remain constant O d. the bond price is expected to rise QUESTION 21 Which of the following is a false statement? a. Buying a bond can be considered supporting the borrowing of the issuer O b. Bond rating companies (like Moody's) have no conflict of interest with the companies whose bonds they rate O c. When banks demand too much return or are unwilling to accept more risk, bords can be the avenue to raising more capital, d. Companies can try to manipulate perception to influence ratings agencies and potential cost of borrowing, QUESTION 28 Which bond is most sensitive to changes in interest rates? O a. 20 year zero coupon bond O b. 2 year 10% coupon bond O c 20 year 10% coupon bond O d. 2 year zero coupon bond d.2