1. If you keep a bond until maturity, in other words you do not sell...
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Finance
1. If you keep a bond until maturity, in other words you do not sell it, you do not need to be concerned about interest rate risk.
True or False
2. The risk that interest rates will increase and your bonds will have a lower price is called interest rate risk.
True or False
3.. The price of the bond on the secondary market is determined by the coupon rate of the bond and what the prevailing market interest rates are.
True or False
4. When you sell a bond on the secondary market, it will always be for the face value of the bond.
True or False
5. Since bonds have more risk, they generally pay a higher interest rate than a savings account in a bank.
True or False
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