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Question 1 reset
A bond with a higher credit rating will pay lower interest rates.
Question 2 reset
Coupon of a bond refers to the interest payable on a bond.
Question 3 reset
The government uses Treasury Bills to borrow for the short‐term.
Question 4 reset
Call and put options modify the maturity of the bond.
Question 5 reset
Bonds are segmented as long and short term based on their Term to maturity.
Question 6 reset
A ceiling limits the minimum interest that an investor will receive from a floating rate bond.
Question 7 reset
Fixed deposits raised by companies are unsecured but rated borrowings.
Question 8 reset
The corporate bond market is dominated by public issues of bonds.
Question 9 reset
The YTM of a bond is the yield that investors will earn on holding a bond to maturity.
Question 10 reset
The credit rating assigned to a bond will change with a change in the financial viability of the borrower.

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