TRUE/FALSE. Write T if the statement is true and 'Fifthe statement is false. 58) The current yield for a bond is constant over time because the coupon rate is fixed. 58) 59) An example of a Euroband is a bond issued in Asia by a U.S. Corporation with interest and principal payments made in US dollars. 59 60) Debentures are expected to have a lower yield than secured bonds because the debentures are more risky and therefore less desirable. 60) I 61) If a band's rating dedines, the interest rate demanded by investors called the required return, also decreases. 61) 62) The yield-to-maturity is the discount rate that equates the present value of the interest and principal payments with the face value of the band (63) Bond A has a current yield of 6% and Bond Bhas a current yield of 8. If the market price of both bonds is the same then the yield to maturity on Bond 5 must be higher than the yield to maturity on Band A 64) A bond rating of "BB" indicates that the company's financial position is above average and hence the default risken the bonds is very low, 68) 65) The expected yuld on junk bonds is higher than the yield on AAA-rated bonds because of the higher default risk associated with junk bonds 65) 66) In the case of insolvency, the daims of debt are honored prior to those of common stock and after those of preferred stock 65)