quiz 1.docx - 1 The required rate of return on a bond is A the interest rate that equates the current market price of the bond with the present value of

quiz 1.docx - 1 The required rate of return on a bond is A...

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1.The required rate of return on a bond is2.Which of the following bond terms are generally positively related to bond price volatility?I. Coupon rateII. MaturityIII. YTMIV. Payment frequency3.A bond that you held to maturity had a realized return of 8 percent, but when you bought it, it had an expected return of 6 percent. If no default occurred, which one of the following must be true?

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