Last year, you purchased a "TIPS" at par. Since that time, both market interest rates and the inflation rate have increased by 0.25 percent

A zero coupon bond:    A.  is sold at a large premium. B.  pays interest that is tax deductible to the issuer when paid. C.  can only be issued by the U.S. Treasury. D.  has more interest rate risk than a comparable coupon bond. E.  provides no taxable income to the bondholder until the bond matures. Refer to section 7.4

62.	Which one of the following risks would a floating-rate bond tend to have less of as compared to a fixed-rate coupon bond?    A.  real rate risk B.  interest rate risk C.  default risk D.  liquidity risk E.  taxability risk Refer to section 7.4

63.	The collar of a floating-rate bond refers to the minimum and maximum:    A.  call periods. B.  maturity dates. C.  market prices. D.  coupon rates. E.  yields to maturity. Refer to section 7.4

64.

Last year, you purchased a "TIPS" at par. Since that time, both market interest rates and the inflation rate have increased by 0.25 percent. Your bond has most likely done which one of the following since last year?    A.  decreased in value due to the change in inflation rates B.  experienced an increase in its bond rating C.  maintained a fixed real rate of return D.  increased in value in response to the change in market rates E.  increased in value due to a decrease in time to maturity Refer to section 7.4

65.

Recently, you discovered a putable income bond that is convertible. If you purchase this bond, you will have the right to do which of the following? I. force the issuer to repurchase the bond prior to maturity II. choose when you wish to receive interest payments III. convert the bond into a TIPS IV. convert the bond into equity shares    A.  I and III only B.  I and IV only C.  II and III only D.  III and IV only E.  I, II, and IV only Refer to section 7.4