Author Question: If a bond is selling for its face value, which of the following statements is TRUE? A) The coupon ... (Read 64 times)

charchew

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If a bond is selling for its face value, which of the following statements is TRUE?
 
  A) The coupon rate and the yield to maturity are the same.
  B) The par value is less than the face value.
  C) This is only possible if this is a zero coupon bond.
  D) All of the statements above are true.

Question 2

Which of the following is not an example of risk reduction?
 
  A)
 
  Wearing seat-belts
  B)
 
  Looking both ways before you cross the street
  C)
 
  Purchasing homeowner's insurance
  D)
 
  Installing a smoke detector



carojassy25

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Answer to Question 1

A

Answer to Question 2

C



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