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bachelor in business administration
Polytechnic State University Sanluis
Jan-2006 - Nov-2010
CPA
Polytechnic State University
Jan-2012 - Nov-2016
Professor
Harvard Square Academy (HS2)
Mar-2012 - Present
Which of the following statements is FALSE?
Select one: a. If a bond receives a rating of BBB, it is considered as an investment grade bond. b. The safest corporate bond is a bond with an AAA rating. c. Everything else equal, bondholders will pay more for callable bonds than for straight bonds.
d. Everything else equal, bondholders will pay more for convertible bonds than for straight bonds.
Assuming that all bonds have a face value of $1,000 and a yield to maturity of 10%, which of the following bonds have the highest degree of interest rate risk?
Select one: a. A bond with 10% coupon rate that matures in 10 years. b. A bond with 8% coupon rate that matures in 10 years. c. A bond with 10% coupon rate that matures in 20 years. d. A bond with 8% coupon rate that matures in 20 years.
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