15. What effect, if any, will decrease in interest rates have on bond values? A) Bond values will increase. B) Bond values will decrease. C) Bond values may increase or decrease, depending on the maturity, quality and Coupon rate. D) None of the above 16. Yield to maturity takes into account everything except A) Annual interest received. B) The difference between the current bond price and its maturity value. C) The number of years to maturity. D) Dividends paid 17. What would be the current yield of a $1000 bond with a 6 percent coupon bond priced at $950? A) 6.52% B) 6.32% c) 6% D) 6.25% 18. Why are equity investment returns typically more than bond returns? A) Equities are riskier than bonds B) Bonds are riskier than equities C) Bonds pay interest payments D) Both A & C 19. Ayield curve is characterized by a market that expects long-term fixed income securities to offer higher yields than short-term fixed income securities. A) Inverted B) Normal C) Flat D) None of the above