Question: True-false statements (15p) Answer true or false and explain briefly why. (a) Bond prices can be converted into yields. (b) Finite annuities are rare securities

True-false statements (15p)

Answer true or false and explain briefly why.

(a) Bond prices can be converted into yields.

(b) Finite annuities are rare securities in retail markets.

(c) The real rate of return cannot be negative.

(d) Yield to maturity is a function of the coupon rate.

(e) The unemployment rate is an indicator of the state of the economy.

(f) AAA-rated bonds are default-free.

(g) Future value is a concave function of the discount rate.

(h) The coupon rate always exceeds yield to maturity.

(i) The fed funds rate is a market interest rate.

(j) The yield curve is a plot of yield to maturity against time to maturity.

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