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QUESTION

The following statements relates to bond relationships.please insert the following phrases to complete each

The following statements relates to bond relationships.please insert the following phrases to complete each

statement.

Increase,decrease,par,discount,premium,less than,more than,greater,less

A.If the current interest rate exceeds the bond's coupon rate, the bond will sell at a ______________.

B. The value of a bond will increase if there is a/an___________in interest rates.

C.A bond's coupon rate is more than the interest rate,therefore the bond is selling at a ____________.

D.As interest rate increases the value of a bond will__________.

E.If the bondholder's required rate of return equals the coupon interest rate,the bond will sell at________.

F.A premium bond sells for _____________as maturity approaches.

G.The discount bond sells for __________as maturity approaches.

H.A bondholder with a short term bond is exposed to __________interest rate risk than when owing a long term bond.

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