单项选择题

Which of the following statements concerning the arbitrage-free valuation of non-Treasury securities is TRUE The credit spread is:（）

A. only a function of the bond’s default risk.
B. only a function of the bond’s term to maturity.
C. a function of default risk and the term to maturity.

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单项选择题Assume a city issues a $ 5 million bond to build a new arena. The bond pays 8 percent semiannual interest and will mature in 10 years. Current interest rates are 9 percent. What is the pres ent value of this bond and what will the bond’s value be in seven years from today Present Value Value in 7 Years from Today（）①A. 4674802 4931276 ②B. 5339758 4871053 ③C. 4674802 4871053

A. ①
B. ②
C. ③

单项选择题If interest rates and risk factors are constant over a given period, then a fixed income bond trading at a discount will have a:（）

A. positive current yield, only.
B. negative current yield and a positive capital gain yield.
C. positive current yield and a positive capital gain yield.