AAA-rated bonds are high risk, high yield debt instruments.

1. AAA-rated bonds are high risk, high yield debt instruments.

True

False

If a stock's expected rate of return is 10% and the required rate of return is 12%, the stock is believed to be ______

Undervalued.

Overvalued.

Fairly-valued

At maturity, the value of either premium bond is higher than its par value.

True.

False.