As the length of time to maturity (i.e., the term) of a bond increases, generally
A) the coupon rate rises
B) the coupon rate falls
C) the riskiness of the bond falls
D) the price of the bond rises
Correct Answer:
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Q46: A split coupon bond
A)distributes interest in cash
Q47: Zero coupon bonds
A)are sold at a discount
B)are
Q48: A call feature is an option while
Q49: Zero coupon and split coupon bonds
A)experience stable
Q50: If a bond has a call feature,
Q52: In a typical bond classification
A)"A" are investment
Q53: Equipment trust certificates are
A)riskier than convertible bonds
B)secured
Q54: Serial bonds
A)have a sinking fund
B)are issued and
Q55: The accrued interest on a bond
A)avoids personal
Q56: Risk to bondholders comes from
1. possibility of
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