Corporate Bonds

2. Which one of the following statements is true?

a. A bond sold for less than its face value is said to be sold at a
premium.
b. A bond sold for more than its face value is said to be sold at
a discount.
c. As interest rates in the economy increase, the value of
existing bonds will decrease.
d. There is a direct relationship between a bond's market value
and the overall interest rates in the economy.

3. In the secondary market, most Corporate Bonds are traded:
a. through investment banks.
b. through commercial banks.
c. on the New York and American Bond Exchanges.
d. between the issuing corporation and the investing public.