Example of a municipal bond

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Reference no: EM131499638

1. Which of the following statements is CORRECT?

a. All else equal, high-coupon bonds have less reinvestment risk than low-coupon bonds.

b. All else equal, long-term bonds have less price risk than short-term bonds.

c. All else equal, low-coupon bonds have less price risk than high-coupon bonds.

d. All else equal, short-term bonds have less reinvestment risk than long-term bonds.

e. All else equal, long-term bonds have less reinvestment risk than short-term bonds.

2. Which example of the following is not an example of a municipal bond?

general obligation bond

revenue bond

Treasury bond

All of the above are examples of municipal bonds.

Reference no: EM131499638

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