1. 1. If the following statements are true, put a "√" in the corresponding parenthesis, otherwise, put a "×". (3 points each)

1. 1. Everything else equal, bond price will be higher if investors are demanding a higher return rate.  (   )
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3. 2. In general, a company's corporate bonds are less risky than their common stocks. (  )

1. 1. In general, corporate bonds with a higher rating should have a higher YTM.         (   )

For a given change in market required return, the price of a bond will change by a greater amount, the longer its maturity. 

   

Answer rating: 100% (QA)

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