21. A coupon bond is reported as having an ask price of 113% of the $1,000 par value in the Wall Street Journal. If the last interest payment was made two months ago and the coupon rate is 12%, the invoice price of the bond will be ____________.

A) $1,100

B) $1,110

C) $1,150

D) $1,160

22. The bonds of Ford Motor Company have received a rating of "D" by Moody's. The "D" rating indicates

A) the bonds are insured

B) the bonds are junk bonds

C) the bonds are referred to as "high yield" bonds

D) B and C

23. Ceteris paribus, the price and yield on a bond are

A) positively related.

B) negatively related.

C) sometimes positively and sometimes negatively related.

E) not related.

E) indefinitely related.

24. The ______ is a measure of the average rate of return an investor will earn if the investor buys the bond now and holds until maturity.

A) current yield

B) dividend yield

C) P/E ratio

D) yield to maturity