1. There is a (n) ________relationship between the value of outstanding bonds and interest rates.
A. direct
B. inverse
C. positive
D. no relationship exists
2. One half of a percent is equal to ______.
A. 25 basis points
B. 100 basis points
C. 50 basis points
D. none of the above
3. Bond refunding is attractive to a company when the current market interest rates are ___________ coupon rates on outstanding debt.
A. the same as
B. lower than
C. higher than
D. none of the above