If a bond’s coupon rate is equal to the market rate of interest, then the bond will sell: At a price equal to its face value at a price greater than its face value at a price less than its face value none of the above is true

1. If a bond’s coupon rate is equal to the market rate of interest, then the bond will sell:
2. At a price equal to its face value
3. at a price greater than its face value
4. at a price less than its face value
5. none of the above is true

• Bonds sell at a premium when the market rate of interest is

A-  Less than the bond’s coupon rate.

B- greater than the bond’s coupon rate

C- equal to the bond’s coupon rate

D- none of the above is true

• Which of the following is the best measure of the total risk in a portfolio?
• Covariance
• Beta
• Correlation
• Standard deviation

• Which of the following investment classes had the leas average based on historical data?
• Long term government bonds
• Large U.S stocks
• Small U.S stocks
• Short term government bonds

• Which of the following statements is NOT true?
• As interest rates (yields) increase, bond prices increase
• In general, bond prices will change as interest rates (yield) change
• When yields change, long term bond prices are more volatile than short term bond prices
• Increase rate (yield) changes and bond prices are inversely related.

• Bonds sell at a discount, when yields to maturity for similar bonds are
• Equal to the bonds coupon rate
• Less than the bonds coupon rate
• Market rates are irrelevant In determining a bonds price
• Greater than the bonds coupon rate

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