1) The yield to maturity on a bond with a price equal to its par value will

Select one:

a. be more than the coupon rate.

b. always be equal to the coupon rate.

c. be less than the coupon rate.

d. be more or less than the coupon rate depending on the required rate of return.

2) If the required return is greater than the coupon rate, a bond will sell at

Select one:

a. book value.

b. a discount.

c. par.

d. a premium.

3) The value of a bond is the present value of the

Select one:

a. interest and dividend payments.

b. interest payments and maturity value.

c. maturity value.

d. dividends and maturity value.

4) __________are debt rated Ba or lower by Moody