To sell an old bond when interest rates have ________, the holder will have to ________ the price of the bond until the yield to the buyer is the same as the market rate.

(I) Prices of longer-maturity bonds respond less dramatically to changes in interest rates. (II) Prices and returns for long-term bonds are less volatile than those for shorter-term bonds.

What is the maturity of a T-bill trading at 99 discounted at 4%?

A $10,000, 8 percent coupon bond that sells for $10,100 has a yield to maturity ________.

The small-firm effect refers to the observation that small firms’ stocks

The relationship between T-bill interest rates and the Federal Funds rate can be described best by which of the following statements?

If potential revenues from underwriting greatly exceed brokerage commissions, there is ________ incentive for investment bank analysts to report ________ information about firms issuing securities.

What is the discount rate, idiscount, of a 28-day T-bill priced at 99.59 today?

What is the duration of a 2-year zero-coupon bond?

Suppose that you purchase a 182-day Treasury bill for $9,850 that is worth $10,000 when it matures. The security’s annualized yield if held to maturity is about