Question: All bond yields are calculated using the same formula and convey the same information. a . True b . False 2 . Bond - fund

All bond yields are calculated using the same formula and convey the same information.
a. True b. False
2. Bond-fund managers typically hold bonds until maturity to maximize yield to maturity.
a. True b. False
3. You are considering two bonds. Bond A has a 9% annual coupon while Bond B has a 6% annual coupon.
Both bonds have a 7% yield to maturity, and the YTM is expected to remain constant. The price of Bond B
will decrease over time, but the price of Bond A will increase over time.
a. True b. False
4. The credit-rating industry in the U.S. is dominated by more than ten firms, ensuring healthy market
competition.
a. True b. False

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