Which one of the following statements about bond price is NOT true?a.All of them.b.Estimate the expected future cash flows using the coupons that the bond will pay and the maturity value to be received.c.The required rate of return, or discount rate, for a bond is the market interest rate called the bond's yield to maturityd.To calculate a bond's price, one needs to calculate the present value of the bond's expected cash flows.e.The value, or price, of any asset is the future value of its cash flows.

Which one of the following statements is true regarding bond valuation?When r is greater than coupon rate, the bond is traded at parThe interest rate (r) and a bond's market price are irrelevant to each otherWhen r increases, the market value of the bond will decreaseWhen r is higher than coupon rate, the bond is called a premium bondWhen r increases, the face value of the bond will also increase

Which of the following statements about the relationship between interest rates and bond prices is true?Group of answer choicesThere is an inverse relationship between bond prices and interest rates, and the price of long-term bonds fluctuates more than the price of short-term bonds for a given change in interest rates (assuming that the coupon rate is the same for both).There is a direct relationship between bond prices and interest rates, and the price of long-term bonds fluctuates more than the price of short-term bonds for a given change in interest rates (assuming that the coupon rate is the same for both).There is an inverse relationship between bond prices and interest rates, and the price of short-term bonds fluctuates more than the price of long-term bonds for a given change in interest rates (assuming that the coupon rate is the same for both).There is a direct relationship between bond prices and interest rates, and the price of short-term bonds fluctuates more than the price of long-term bonds for a given change in interest rates (assuming that the coupon rate is the same for both).

Which of the following statements is FALSE?a.The time remaining until the repayment date is known as the term of the bond.b.Bonds are usually less risky than shares.c.Bonds are securities sold by governments and corporations to raise money from investors today in exchange for promised future payments.d.By convention the coupon rate is expressed as an effective annual rate.e.Bonds typically make two types of payments to their holders.

Which one of the following statements about bonds is correct?Group of answer choicesThe yield on a bond for a bond investor is generally a fixed rate.Bond prices vary inversely with interest rates.Most bonds pay interest annually.Bond coupon rates vary with interest rates.

Bond A has a coupon rate of 10% and a yield of 13%. Bond B has coupon rate of 5% and sells for the same price as Bond A. Both bonds have the same face value and maturity. From this, which of the followings is the most inappropriate statement?A.Both bonds are discount bonds.B.The yield of Bond B is less than 10%.C.The yield of Bond B is greater than 5%.D.Bond A is a discount bond.