Which bonds will have the higher coupon all else equal?

A$)$ senior debt

B$)$ subordinated debt

$11)$ Which bonds will have the higher coupon all else equal?

A$)$ callable bond

B$)$ non$-$callable bond

$12.$ Reinvestment rate risk involves the uncertainty concerning rates at which cash flows can be

reinvested. Identify the accurate statement pertaining to reinvestment rate risk.

A$)$ short$-$term bonds have less reinvestment rate risk than long$-$term bonds

B$)$ short$-$term bonds have more reinvestment rate risk than long$-$term bonds

$13.$ Identify the accurate statement pertaining to reinvestment rate risk.

A$)$ high coupon rate bonds have more reinvestment rate risk than low coupon rate bonds

B$)$ high coupon rate bonds have less reinvestment rate risk than low coupon rate bonds

$14.$ Generally speaking, financial institutions such as banks and insurance companies will not invest in

bonds with ratings less than by S&P$.$ Likewise, they will not invest in bonds with ratings less

t h a n b y Moodys.

A$)$ AAA A a a

B$)$ BBB$-$ Baa$-$

C CCC Caa