6,7

and time to maturity? ments because the bond because they are risk-free." s should only raise capital in 180 CHAPTER 7 6. Holding all else constant, what is the relationship between bond price and coupon 7. Holding all else constant, what is the relationship between bond price and time to 8. Comment on the following statement, "Callable bonds are not good investments be issuer can shorten the investor's investment horizon without his input." 9. Comment on the following statement, "Bonds are good investments because they a 10. Evaluate this statement, "Bonds offer a lower yield to investors, so firms should only raise the bond market." | What is the relationship between a bond's current yield and its yield to maturity