Run the bond gates

Exercise and reference answers

Questions

1. Correct

   Discount

   Choices

   1. Discount
   2. Premium
   3. Neither

2. Correct

   Premium

   Choices

   1. Discount
   2. Premium
   3. Neither

3. Correct

   Investment

   Choices

   1. Investment
   2. Junk
   3. Neither

4. Correct

   Junk

   Choices

   1. Investment
   2. Junk
   3. Neither

5. Correct

   Zero coupon

   Choices

   1. Zero coupon
   2. Callable
   3. Neither

6. Correct

   Callable

   Choices

   1. Zero coupon
   2. Callable
   3. Neither

Instructions

Pick the pricing, then the grade, then the bond type.

Explanation