Question $11$ pts is the yield differential representing the risk premium associated with the possibility that the corporate issuer will be unable to pay back what it has promised to the investor. $(2$ words$)$ Flag question: Question $2$ Question $21$ pts fund specifies that a bond must be paid off systematically over its life. $(1$ word$)$ Flag question: Question $3$ Question $31$ pts The can be viewed as the expected return to the bond, meaning that it is an expression of how the investor anticipates being compensated for owning the security. $(1$ or $3$ words$)$ Flag question: Question $4$ Question $41$ pts The bond promises to pay a stipulated principal amount at a future maturity date, but no interim interest payments. $(2$ words$)$ Flag question: Question $5$ Question $51$ pts Bond can be interpreted as a measure of the bond$$s price volatility, the interest rate sensitivity$.(1$ word$)$ Flag question: Question $6$ Question $61$ pts High$-$Yield Bonds, also known as speculative bonds and junk bonds, are based on a specification that bonds rated below grade make up non$-$investment grade bonds. $(1$ word$)$ Flag question: Question $7$ Question $71$ pts premium is the amount above the par value that the issuer must pay to the bondholder for prematurely retiring the bond. $(1$ word$)$ Flag question: Question $8$ Question $81$ pts Bond investors separate the into four components: $(1)$ The quality of the issue as determined by its risk of default relative to other bonds, $(2)$ The term to maturity of the issue, which can affect price volatility, $(3)$ Indenture provisions, including collateral, call features, and sinking$-$fund provisions, and $(4)$ Foreign bond risk, including exchange rate risk and country risk. $(2$ words$)$ Flag question: Question $9$ Question $91$ pts The is the discount rate that equates the present value of cash outflows for an investment with the present value of its cash inflows. $(1$ or $3$ words$)$ Flag question: Question $10$ Question $101$ pts bonds, also called revenue bonds for municipal issues, pay interest only if earned. $(1$ word$)$