Question: Question 19 (2.5 points) If the yield to maturity on a bond increases, what will happen to the bond's capital gains yield? It will decrease

Question 19 (2.5 points) If the yield to maturity on a bond increases, what will happen to the bond's capital gains yield? It will decrease It will increase. There is not sufficient information to answer this question. It will remain the same Question 20 (2.5 points) Which of the following rules regarding interest rate premiums are true? All bonds with maturities longer than one year must have maturity risk premium All securities must have the real risk-free rate and an appropriate inflation premium US government securities do not have default risk or liquidity risk premiums All of the above are true ninetina 71 17 5 anintel

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