True False 0 0 1. A bond's coupon is more likely to change than to remain the same over the bond's life. 2. It is fair to say that most bonds in the U.S. are unsecured. 0 O O O 3. In decimal form, one basis point = 0.0001 0 0 4. Both Treasury bonds and Treasury bills pay interest. 0 O 5. A bond's call price generally exceeds its par value. O 6. "Coupon" is normally expressed in dollars. a O 7. Extremely low credit is considered less risky than "extremely speculative. 0 O 8. APR and BEY can be used interchangeably. O O 9. A bond's price and current yield are negatively related. 0 0 10. The first zero-coupon bond appeared before 1980. 0 11. It is fair to say that the market sets a bond's yield-to-maturity. O O 0 O 12. If a bond's coupon rate its par value. 13. The highest credit rating for Standard and Poor is Aaa. 14. Bond downgrades are less common than bond upgrades. 0 O O 0 O O 15. Bonds were originally issued as registered bonds. 16. If a bond has a 20-year maturity, a coupon rate of 6%, a yield-to-maturity of 5% and a par value of $1000, its price > $1100. 17. If a zero-coupon bond has a 10-year maturity, a 7% yield-to-maturity and a par value of $1000, its price its par value. 13. The highest credit rating for Standard and Poor is Aaa. 14. Bond downgrades are less common than bond upgrades. 0 O O 0 O O 15. Bonds were originally issued as registered bonds. 16. If a bond has a 20-year maturity, a coupon rate of 6%, a yield-to-maturity of 5% and a par value of $1000, its price > $1100. 17. If a zero-coupon bond has a 10-year maturity, a 7% yield-to-maturity and a par value of $1000, its price