Which of the following statement is correct? All else equal, bond price falls as the discount rate increases Holders of floating-rate bonds can exchange the bond for a specified number of common stock shares The price of a bond is always higher than the par value of the bond A company with a very high debt-to-equity ratio is more likely to issue an investment-grade bond than a junk bond QUESTION 3 Which of the following statement is NOT correct? Holders of convertible bonds can exchange the bond for a specified number of common stock shares A company with a very high current ratio is more likely to issue an investment-grade bond than a junk bond A puttable bond holder is likely to demand early repayment, if the market interest rate increase A company that is about to bankrupt is more likely to issue a junk bond than an investment-grade bond QUESTION 4 Which of the following sfatement is correct? The coupon rate of a bond is always higher than the discount rate of the bond All else equal, bond price falls as the discount rate increases The coupon rate of a bond is greater than the yield to maturity, the bond is a discount bond If the price of the bond is higher than the par value, the bond is a discount bond