1. When a bond's yield to maturity is greater than the bond's coupon rate, the bond:

a. has reached its maturity date.

b. will be called.

c. is selling at a discount.

d. is selling at a premium.

e. is priced at par.

2. The current value of a bond is dependent upon which of the following?

I. market rate of interest

II. coupon rate

III. dividend rate

IV. time to maturity

a. I and IV only

b. I, II, III, and IV

c. I and III only

d. I, II, and IV only

e. II and IV only

3. The yield to maturity on a bond is:

a. equal to the coupon rate divided by the current market price.

b. another name for the current yield.

c. the current required market interest rate.

d. equal to the annual interest divided by the face value.

e. another name for the coupon rate.