quiz 2 - Exam Name MULTIPLECHOICE. 1)If,,,youcanbesurethat1 A) B)

quiz 2 - Exam Name MULTIPLECHOICE. 1)If,,,youcanbesurethat1...

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ExamName___________________________________MULTIPLE CHOICE.  Choose the one alternative that best completes the statement or answers the question. 1) If, while you are holding a coupon bond, the interest rates on other similar bonds fall, you can be sure that 1) _____ A) the par value of your bond will rise. B) the market price of your bond will fall. C) the coupon payments on your bond will fall. D) the market price of your bond will rise.  2) If an investor is certain that market interest rates will decline in the future, which of the following will she be most likely to purchase? 2) _____ 3) What is the rate of return on a bond with a coupon of $38 payable in one year that was purchased for $950 and sold one year later for $931? 3) _____
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