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Author Question: A junk bond is a bond with a A) low yield to maturity. B) value of zero. C) low face value, but ... (Read 121 times)

naturalchemist

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on: Jun 30, 2018
A junk bond is a bond with a
 
  A) low yield to maturity.
  B) value of zero.
  C) low face value, but high coupon rate.
  D) high default risk.
  E) very low maturity.

Question 2

Based on our understanding of the determinants of the interest rate and bond prices, we know that a reduction in income will cause
 
  A) an increase in bond prices and an increase in the interest rate (i).
  B) a reduction in bond prices and an increase in i.
  C) an increase in bond prices and a reduction in i.
  D) a reduction in bond prices and a reduction in i.
  E) none of the above


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Kedrick2014

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Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

C


naturalchemist

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Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

olderstudent

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Reply 3 on: Yesterday
:D TYSM

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