QUESTION 1

1. "When comparing an AAA bond and a CCC bond, the coupon rate of the AAA bond will be _____ the coupon rate of the CCC bond."

   		Less than
   		Equal to
   		Greater than

QUESTION 2

1. The maturity of bonds is best described as _____-term.

   		Short
   		Medium
   		Long

QUESTION 3

1. The stated interest rate of a bond is called the _____ rate.

   		Market
   		Return
   		Yield
   		Coupon

QUESTION 4

1. The largest risk facing a bond is _____ risk.

   		Default
   		Interest rate
   		Systematic
   		Firm

QUESTION 5

1. A bond's interest payment is best described as a _____ and bondholders are best described as _____ .

   		Residual; owners
   		Residual; creditors
   		Promise; owners
   		Promise; creditors

1 points

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