California College – San Diego Finance For Business Exam The YTM of a corporate bond equals the Coupon Yield when: Select one: a. When the price of a bon

California College – San Diego Finance For Business Exam The YTM of a corporate bond equals the Coupon Yield when:

Select one:

a. When the price of a bond is below par

b. The bond is selling at par

c. none of the answers are correct

d. never,the two yields are always different

The bond value approaches par as it approaches its maturity?

Select one:

a. never

b. sometimes

c. Always

d. only if coupon is 5%

e. 1064.63

Which of the following is a risk when owning bonds?

Select one:

a. default risk in case of none US government bonds

b. inflation risk

c. reinvestment risk

d. all the answers are correct

e. answers a. and b. only are correct

standard deviation is a measure of risk of investing in a stock

Select one:

True

False

Diversification of a stock portfolio can normally be achieved by:

Select one:

a. owning 30 to 40 randomly selected stocks

b. owning more than one stock

c. it is not possible to diversify stocks

d. None of the above

e. none of the answers are correct