The Walthers Company has a semi-annual coupon bond outstanding. An increase in the market rate of interest

The Walthers Company has a semi-annual coupon bond outstanding. An increase in the market rate of interest will have which one of the following effects on this bond?    A.  increase the coupon rate B.  decrease the coupon rate C.  increase the market price D.  decrease the market price E.  increase the time period Refer to section 7.1

38.

Which of the following are characteristics of a premium bond? I. coupon rate < yield-to-maturity II. coupon rate > yield-to-maturity III. coupon rate < current yield IV. coupon rate > current yield    A.  I only B.  I and III only C.  I and IV only D.  II and III only E.  II and IV only Refer to section 7.1

39.

Which of the following relationships apply to a par value bond? I. coupon rate < yield-to-maturity II. current yield = yield-to-maturity III. market price = call price IV. market price = face value    A.  I and II only B.  I and III only C.  II and IV only D.  I, II, and III only E.  II, III, and IV only Refer to sections 7.1 and 7.2

40.

Which one of the following relationships is stated correctly?    A.  The coupon rate exceeds the current yield when a bond sells at a discount. B.  The call price must equal the par value. C.  An increase in market rates increases the market price of a bond. D.  Decreasing the time to maturity increases the price of a discount bond, all else constant. E.  Increasing the coupon rate decreases the current yield, all else constant. Refer to sections 7.1 and 7.2