Question1: Which of the following statements about bonds is true?
[A] Long-term bonds are less risky than short-term bonds.
[B] If market interest rates are higher than a bonds coupon interest rate, then the bond will sell above its par Value.
[C] Bond prices move in the same direction as market interest rates.
[D] If market interest rates change, long-term bonds will fluctuate more in value than short-term bonds.
[E] None of the above.
Question2: Which of the following statements about bonds is true?
[A] Bond prices move in the same direction as market interest rates.
[B] As the maturity date of a bond approaches, the market value of a bond will become more volatile.
[C] If market interest rates are below a bonds coupon interest rate, then the bond will sell above its par value.
[D] Long-term bonds have less interest rate risk than do short-term bonds.
[E] None of the above.
Question3: Which of the following statements about bonds is true?
[A] Bond prices move in the same direction as market interest rates.
[B] As the maturity of a bond approaches, its market value approaches its par value.
[C] If market interest rates are below a bonds coupon interest rate, then the bond will sell below its par value.
[D] Long-term bonds have less interest rate risk than do short-term bonds.
[E] None of the above.
Question4: Which of the following bonds is secured by a lien on real property?
[A] A subordinated indenture
[B] A mortgage bond
[C] A zero based preferred
[D] A par value bond