Question: Answer the questions below: 1. When a bond matures, the issuer repays the bonds face value. True or False? 2. The return to bondholders is

Answer the questions below:

1. When a bond matures, the issuer repays the bonds face value. True or False?

2. The return to bondholders is guaranteed to equal the yield to maturity only if the bond is held until maturity. True or False?

3. A bond's bid price will be lower than the ask price. True or FALSE?

4. Issuers compensate investors for default risk by putting a high face value on their bonds. True or False?

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