1. A company’s bond is most likely said to be trading at a premium in which scenario?
A. The bond’s yield to maturity is higher than its coupon rate
B. The bond is undervalued
C. The bond’s yield to maturity is lower than its coupon rate
D.The bond is overvalued
2. Which of the following is a benefit of the Sharpe ratio?
A. The Sharpe ratio enables a comparison of investments of different risk levels
B. The Sharpe ratio tells you the return an investment will earn
C. The Sharpe ratio is a way of hedging different risks
D.The Sharpe ratio tells you how efficient the market is