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Which one of the following is NOT true? a. Bonds have many features that are spelled out in a document called the indenture. b. Bonds are rated based on their default risk. Some bonds, like Treasury Bonds, have no risk of default; whereas junk bonds have significant default risk. c.Bond values move in the direction of interest rates, leading to gains or losses for the investor. d. When determining bond prices or yields, it is application of discounted cash flow concepts.
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Bonds are rated based on their default risk. Some bonds, like Treasury Bonds, have no risk of default; whereas junk bonds have significant default risk.
Expert answered|jeifunk|Points 8501|
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Asked 1/24/2013 9:35:38 AM
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