Which of the two statements below are correct? You can only mark two alternatives and you will get 2 point for each correct answer.

Which two of the following five statements are correct?

• All sovereign bonds are risk-free
• When the interest rate decreases, bond prices go up
• An arbitrage opportunity is the possibility to make a profit without any risk
• Junk bonds are corporate bonds with a high credit rating
• If a bond's coupon rate is below the yield to maturity, the bond is trading at a premium

Answer rating: 100% (QA)

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