Question: QUESTION Interest rate risk increases with: both increases in time to maturity and coupon rates. increases in time to maturity and decreases in coupon rates.

QUESTION Interest rate risk increases with: both increases in time to

QUESTION Interest rate risk increases with: both increases in time to maturity and coupon rates. increases in time to maturity and decreases in coupon rates. increases in coupon rates and decreases in market rates. decreases in market rates and increases in time to maturity. both decreases in coupon rates and market rates QUESTION 2 A bond with a 5 percent coupon that pays interest semiannually and is priced at par will have a market price of and interest payments in the amount of each. $1,005; $50 $1,050; $25 $1,050; $50 $1,000; $50 $1,000; $25

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