Question
Questions 1 to 10 are false statements. Please re-write each statement so that it is true. It may be as simple as one word change
Questions 1 to 10 are false statements. Please re-write each statement so that it is true. It may be as simple as one word change or more complex.
5. The way that TIPS protect against inflation is because the coupon rate is changed every six months by the inflation rate as measured by the consumer price index (CPI).
6. All else equal, (maturity, coupon rate, face value, etc.) a bond that is callable should have a lower yield-to-maturity than a convertible bond by the same issuer.
7. When a bond is sold between coupon payment dates, the accrued interest owed to the bond buyer decreases as the next coupon payment date approaches.
8. T-notes and T-bonds are issued in minimum denominations of $10,000 or multiples of $10,000.
9. Some corporate bonds may have a deferred call provision. That means that the bondholder can defer returning the bond to the company if it is called and hold the bond to maturity.
10. Most all corporate bonds are traded on an exchange market and only a select few trade over-the-counter through bond dealers.
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