1. The “yield curve” shows
The credit quality of a bond.
The coupon payment on a bond.
The par value of a bond.
The relationship between years to maturity and yield to maturity on bonds of the same or similar issuers.
2. Firm specific risk
A. is the risk of a unique adverse event happening to a firm.
B. depends on the state of the bond markets
C. is not relevant for international firms.
D. is greater in bull than bear markets.