Question

Pair items to make true statements

-       A.       B.       C.       D.       E.       F.       G.       H.       I.	If the discount rate exceeds the coupon rate the bond is a _________ bond
-       A.       B.       C.       D.       E.       F.       G.       H.       I.	If the coupon rate exceeds the discount rate the bond is a _________ bond
-       A.       B.       C.       D.       E.       F.       G.       H.       I.	If the coupon rate equals the discount rate the bond is a _________ bond
-       A.       B.       C.       D.       E.       F.       G.       H.       I.	As the number of remaining payments decreases, the price of a premium bond will
-       A.       B.       C.       D.       E.       F.       G.       H.       I.	If the discount rate decreases the price of a premium bond will
-       A.       B.       C.       D.       E.       F.       G.       H.       I.	If the discount rate decreases the price of a discount bond will

A.	discount
B.	investment
C.	increase
D.	increase
E.	square
F.	par
G.	decrease
H.	decrease
I.	premium

Answer 1

If the discount rate exceeds the coupon rate the bond is a _discount__ bond (Option A is correct option)
If the coupon rate exceeds the discount rate the bond is a ___premium____ bond (Option I is correct option)
If the coupon rate equals the discount rate the bond is a ___par___ bond (Option F is correct option)
As the number of remaining payments decreases, the price of a premium bond will decrease( Option G is correct option)
If the discount rate decreases the price of a premium bond will increase ( Option C is correct option)
If the discount rate decreases the price of a discount bond will increase ( Option D is correct option)