Question 1
The coupon rate of interest on a bond is always stated as a(n)
◦ daily rate.
◦ monthly rate.
◦ semiannual rate.
◦ annual rate.
Question 2
On the secondary bond market,
◦ only new bonds can be sold.
◦ bonds are guaranteed to bring at least par value.
◦ bond prices vary with interest rate movement and other factors.
◦ bonds usually take several days to sell.