A liquid secondary bond market allows an investor to sell a bond at（）

A、the desired price

B、a price at least equal to the purchase price

C、a price close to the bond's fair market value

D、空

after purchase, the yield required by the market increases. The investor would then most likely have to sell the bond at:

A.par.

B.a discount.

C.a premium.

A．bond

B．premium

C．par value

D．coupon rate

A．nonnegotiable; secondary

B．nonnegotiable; primary

C．negotiable; secondary

D．negotiable; primary

A、the investor is hedged against interest rate risk.

B、reinvestment risk dominates, and the investor is at risk of lower rates.

C、market price risk dominates, and the investor is at risk of higher rates.

D、空

A、bear market

B、bull market

C、Financial markets

D、product market

A、The New York Stock Exchange

B、The U.S. government bond market

C、The over-the-counter stock market

D、The options markets

E、All of the above

vestment risk for an investor holding the bonds to maturity is greatestfor the bond that is:

A.a coupon bond selling at a discount to par as a result of market yields increasing after the bond was issued.

B.a zero-coupon bond.

C.a coupon bond selling at a premium to par.

Suppose that there are only three securities in the market: GM stock ($66 billion), Toyota stock ($22 billion) and the risk-free government bond ($12 billion). Now, there are two rational investors planning to allocate $100,000 to the above securities. Given that Investor 1 has higher risk averse than Investor 2, and that Investor 1 invests $24,000, $57,000 and $19,000 in GM stock, Toyota stock and riskless bond, respectively, then which of the following situations is a possible investment of Investor 2 if the CAPM valid？

A、$12,000 in riskless bond, $66,000 in GM stock and $22,000 in Toyota stock

B、$12,000 in riskless bond, $78,000 in GM stock and $10,000 in Toyota stock

C、$48,000 in riskless bond, $39,000 in GM stock and $13,000 in Toyota stock

D、$48,000 in riskless bond, $42,000 in GM stock and $10,000 in Toyota stock

ond A allows the issuer to call the bond before stated maturity, Bond B allows the investor to put the bond back to the issuer before stated maturity, and Bond C contains no embedded options. The bonds are otherwise identical. The manager tells his assistant, “Bond A and Bond B should have larger nominal yield spreads to a U.S. Treasury than Bond C to compensate for their embedded options.” Is the manager most likely correct？

A. Yes.

B. No, Bond A’s nominal yield spread should be less than Bond C’s.

C. No, Bond B’s nominal yield spread should be less than Bond C’s.