题目内容

Bonds with relatively low risk of default are called ().

A. zero-coupon bonds
B. junk bonds
C. investment-grade bonds
D. none of the above

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Moody's and Standard and Poor's are agencies that ().

A. help investors collect when corporations default on their bonds
B. advise municipal bond issuers on the tax exempt status of their bonds
C. produce information about the probability of default on corporate bonds
D. maintain liquid markets for corporate bonds

Yield curves can be classified as ().

A. upward-sloping
B. downward-sloping
C. flat
D. all of the above

Of the four theories that explain how interest rates on bonds with different terms to maturity are related, the one that views long-term interest rates as equaling the average of future short-term rates expected to occur over the life of the bond is the ().

A. pure expectations theory
B. segmented markets theory
C. liquidity premium theory
D. preferred habitat theory

According to the efficient market hypothesis, the current price of a financial security ().

A. is the discounted net present value of future interest payments
B. is determined by the highest successful bidder
C. fully reflects all available relevant information
D. is a result of none of the above

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