HW 5 – Flashcards

______ Yield curve that reflects higher expected future rates of return

Generally, an increase in risk will result in ______ required return or interest rate

A _____ is a restrictive provision on a bond which provided for the systematic retirement of the bonds prior to their maturity

A bond will sell ______ when the stated rate of interest exceeds the required rate of return, ______ when the stated rate of interest is less than the required return is less than the required return, and _____ when the stated rate of interest is equal to the required return

If the required return is greater than the coupon rate, a bond will sell at ____