7. Three students made statements concerning bond private placements. Which is/are correct? Student X. Interest rates on privately placed debt tend to be higher than for similar public issues. Student Y. Purchasers of privately placed debt have assets of at least $100 million. Student Z. Once bonds have been privately placed, the original buyers must hold the bonds until maturity. A. X only B. Y only C. X and Y only D. Y and Z only E. X, Y, and Z 8. Which choice(s) can be correctly said about a coupon bond? A. When the coupon bond is priced at its face value, the yield to maturity equals the coupon rate. B. The price of a coupon bond and the yield to maturity are negatively related. C. The yield to maturity is greater than the coupon rate when the bond price is below the par value. D. All three of the above are true. E. Only (a) and (b) of the above are true. 9. All else being equal, the highest required rate of return will be on which of the following bonds? A. AAA-rated noncallable corporate bond with a sinking fund B. AA-rated callable corporate bond with a sinking fund C. AAA-rated callable corporate bond with a sinking fund D. High investment-grade municipal bond E. AA-rated callable corporate bond without a sinking fund 10. Of the following types of bond issues, which normally have the lowest regular interest payment? A. Fixed-rate long-term bonds B. Floating-rate long-term bonds C. Fixed-rate short-term bonds D. Floating-rate short-term bonds E. Zero coupon bonds