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Multiple Choice Quiz
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1
The price of a Treasury bill is the present value of a single future payment.
A)True
B)False
2
The yield to maturity of a bond is always equal to the bond's coupon rate.
A)True
B)False
3
A change in government borrowing would affect the demand for bonds.
A)True
B)False
4
Bonds are risky because the bond's issuer may fail to make the promised payment.
A)True
B)False
5
In thinking about U.S. Treasury bonds we can ignore inflation risk.
A)True
B)False





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