1 bonds issues by the us governmenta provide totally, Ask an Expert

Finance

1. Bonds issues by the U.S. government:

A. provide totally tax-free income.

B. pay interest that is exempt from state and local income tax.

C. are considered to be free of default risk.

D. are considered to be free of interest rate risk.

2. As the yield to maturity increases, the:

A. lower the coupon rate desired by that investor.

B. higher the price the investor offers to buy a bond.

C. amount the investor is willing to pay to buy a bond decreases.

D. lower the rate of return desired by the investor.

E. longer the time to maturity.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92856615

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