Answer the following statements true (T) or false (F)
1. The longer the maturity of a Treasury security, the smaller the interest rate risk.
2. The value of a bond that pays semiannual interest is greater than that of an otherwise equivalent annual coupon interest paying bond.
3. Interest rate risk is the risk that results from the changes in interest rates and thereby impact the bond value.
4. When the required return is different from the coupon interest rate and is constant until maturity, the value of the bond will approach its par value as it nears maturity.
5. When a bond's required return is greater than its coupon interest rate, the bond value will be less than its par value.
1. FALSE
2. TRUE
3. TRUE
4. TRUE
5.TRUE
You might also like to view...
Product liability cases and strict product liability cases would all be considered ____________________ torts.
Fill in the blank(s) with the appropriate word(s).
Manuela and Noor were incensed when their company decided to get rid of its onsite childcare center and expand its gym and sports facilities instead. They find it outrageous that the company did not factor its employees' wants and needs into its decision, especially given the fact that 47 percent of its employees have children still living at home. Manuela and Noor feel that ________ justice was not served.
A. informational B. distributive C. adaptive D. procedural E. interpersonal
In October 1981, Robert E. Hinkle leased to Raymond Arington the Dixie Plaza in Upshur County, West Virginia. The lease agreement contained the following clause: Any improvements made to the leased premises shall, upon termination of this lease or the termination of any extension thereof, become the property of the lessor. Arington hired Dunlap and others to do electrical and carpentry work to a
building located on the premises. Arington went out of business shortly thereafter, owing Dunlap money for wages and materials. On March 3, 1982, Dunlap filed a mechanic's lien against the property. That same day he filed a suit to enforce the lien against Arington and Hinkle. Can Arington and Hinkle be subject to a mechanic's lien and its foreclosure? A) No, Hinkle cannot be subject to a mechanic's lien unless he was involved with or agreed to the improvements. B) Yes, Hinkle can be subject to a mechanic's lien because the provision in the lease finds him benefiting from them. C) Yes, Hinkle can be subject to the mechanic's lien if he did nothing to stop the work of Dunlap. D) No, Hinkle cannot be subject to a mechanic's lien unless he signed a contract with Dunlap.
Patents last for ________
(a) 20 years (b) 75 years (c) the life of the author (d) the life of the author plus 70 years