Investors become more concerned about default risk on corporate bonds while simultaneously market interest rates on safer bonds decline. For a particular risky corporate bond, which conclusion is most defensible without additional information?

If expected inflation rises while the real interest rate is unchanged, the Fisher relationship predicts that the nominal interest rate will: 

A bond’s coupon rate is 5%, and the bond sells above face value. Which relationship is most likely? 

An interest rate rises from 3.50% to 4.00%. How large is the increase? 

The nominal interest rate is 7% and expected inflation is 3%. Using the approximate Fisher relationship, the real interest rate is: 

A bond’s coupon rate is 6%, and the bond is currently selling below face value. Which relationship is most likely? 

A bond selling for more than its face value is called a: 

A bond investor receives a coupon payment and then sells the bond for more than the purchase price. The price increase is a:

A one-year zero-coupon bond promises $1,000 at maturity and sells for $952.38. Its yield is approximately: 

A worker earns $72,000 per year, owns $260,000 of assets, and owes $95,000. What is the worker’s wealth?