Which of the following statements is true or false? By convention the coupon rate is expressed as an effective annual rate. The IRR of an investment in a zero-coupon bond is the rate of return that investors will earn on their money if they buy a default free bond at its current price and hold it to maturity. The risk of default, which is known as the credit risk of the bond, means that the bond's cash flows are not known with certainty. The principal or face value of a bond is the notional amount we use to compute the interest payments. Prior to its maturity date, the price of a zero-coupon bond is always greater than its face value. Sovereign debt is debt issued by national governments