A call feature will have no impact on the value of a bond if interest rates rise. Question 15 options: a) True b) False Save

A call feature will have no impact on the value of a bond if interest rates rise.

Question 15 options:

	a)	True
	b)	False

Question 16 (2.5 points)

The term and duration of a bond are equal for zero coupon bonds.

Question 16 options:

	a)	True
	b)	False

Question 17 (2.5 points)

If a $1,000 bond with a 7 percent coupon were to sell for $978, the current interest rate exceeds 7 percent.

Question 17 options:

	a)	True
	b)	False

Question 18 (2.5 points)

If a bond sells for a premium, the current yield exceeds the yield to maturity.

Question 18 options:

	a)	True
	b)	False

Question 19 (2.5 points)

The smaller a bond's coupon implies a longer duration.

Question 19 options:

	a)	True
	b)	False

Question 20 (2.5 points)

If a $1,000 bond has a coupon of 8 percent and matures after eight years, the price of the bond will exceed $1,000 if the current interest rate is 9 percent.

Question 20 options:

	a)	True
	b)	False

A call feature will have no impact on the value of a bond if interest rates rise. The term and duration of a bond are equal for zero coupon bonds. If a $1,000 bond with a 7 percent coupon were to sell for $978, the current interest rate exceeds 7 percent. If a bond sells for a premium, the current yield exceeds the yield to maturity. The smaller a bond's coupon implies a longer duration. If a $1,000 bond has a coupon of 8 percent and matures after eight years, the price of the bond will exceed $1,000 if the current interest rate is 9 percent