Which of the following statement is true?Group of answer choicesCorporate bond yields are generally lower than government bond yields for bonds having the same coupon rate and maturity.Once a bond defaults, bondholders can no longer receive any residual payment from the bond.Two bonds have the same maturity, risk rating, and face value, but have different coupon rates. The bond with a lower coupon rate carries greater risks.The spread of junk bond yields over that of Australian Government Bond is generally lower than the spread of investment-grade bonds over that of the Australian Government Bond.

Once a bond defaults, bondholders can no longer receive any residual payment from the bond.Corporate bond yields are generally lower than government bond yields for bonds having the same coupon rate and maturity.The spread of junk bond yields over that of Australian Government Bond is generally lower than the spread of investment-grade bonds over that of the Australian Government Bond.Two bonds have the same maturity, risk rating, and face value, but have different coupon rates. The bond with a lower coupon rate carries greater risks.

Government bonds have lower yield to maturity than do corporate bonds of the same maturity because the ________ premium is lower for government bonds. A. interest rate risk B. inflation C. default

Which of the following statement is FALSE?Group of answer choicesCoupon is the stated interest payment made on a bond.Prior to its maturity date, the price of a zero-coupon bond is always greater than its face value.Short-term bonds have less interest rate risk than long-term bonds.When interest rates rise, bond prices fall.Ordinary shares are generally riskier assets than bonds.

Bond A has a coupon rate of 10% and a yield of 13%. Bond B has coupon rate of 5% and sells for the same price as Bond A. Both bonds have the same face value and maturity. From this, which of the followings is the most inappropriate statement?A.The yield of Bond B is greater than 5%.B.Bond A is a discount bond.C.Both bonds are discount bonds.D.The yield of Bond B is less than 10%.

Which one of the following statements is NOT true?Group of answer choicesThe yield to maturity of a bond is the discount rate that makes the present value of the coupon and principal payments equal to the price of the bond.A bond's yield to maturity changes daily as interest rates increase or decrease.The realised yield is the yield that the investor earns if the bond is held to maturity, and all the coupon and principal payments are made as promised.The yield to maturity is the yield that the investor earns if the bond is held to maturity, and all the coupon and principal payments are made as promised.The term structure of interest rates shows the relationship between the yield to maturity and time to maturity.