QUESTION 7

A bond that has a yield of 8% and a coupon rate of 7%, should have a _______________ price than a bond that has a yield of 7% and a coupon rate of 8%. A. higher B. lower C. equal

QUESTION 8

If yields remain constant, which of the following bonds will have a capital gain over the year?

Bond	Coupon Rate	YTM	Time to maturity
A	4%	5%	5 years
B	5%	5%	5 years

		A
		B
		A=B