Question: 1. The Security Market Line has __________ . A. a positive slope B. a negative slope C. no slope D. a beta of 1.0 2.

1. The Security Market Line has __________ .

A. a positive slope
B. a negative slope
C. no slope
D. a beta of 1.0
2. MicroMedia Inc. $1,000 par value bonds are selling for $1,265. Which of the following statements is TRUE?
A. The bond market currently requires a rate (yield. less than the coupon rate.
B. The bonds are selling at a premium to the par value.
C. The coupon rate is greater than the yield to maturity.
D. All of the above are true.

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