D Question 1 3 pts RE D Which one best completes the following sentence: When the interest rates rise, the bond value ___ this is called the O Rises; default risk Rises; interest rate risk Falls; default risk Falls; interest rate risk Question 2 11 pts Please match the following terms with a choice that best describes it in the box Face value Coupons [Choose ] A different name for 'r' in the bond world. Arises from the changes in bond value when rates fluctuate. Interest payments on a bond Specifies actions that the borrower must abide by. Number of years remaining until maturity. Prohibits or limits actions for the borrower. A.k.a. par value Arises when the issuer firm cannot make all the promised payments on a bond. Are used to evaluate the creditworthiness of the issuer firms (borrowers). Short-term debt issued by the U.S. government. [Choose] Yield to maturity Time to maturity Treasury bills [Choose Interest rate risk [Choose Default risk [Choose Negative covenants [Choose) Positive covenants [Choose] GA Evo Negative covenants ( Choose) Positive covenants Choose) Bond ratings [Choose Question 3 3 pts What comes closest to the price of a U.S. Treasury Bill offering $10,000 in 13 weeks if the required rate of return is 1.2%. 9990 9950 9970 10000 D Question 4 3 pts What comes closest to the price of a bond that pays an annual coupon of $55 at the end of every year and has 13 years until maturity? The par value is $1000. Use a yield to maturity of. 5.5%. 945 975 1000 -1000