1. Altman's study of bond mortality fund
(a) most defaults occur within 2 years of issuance.
(b) in general, the lower the rating at the time of issue, the higher the default rate.
(c) that no AAA rated bonds have defaulted.
(d) AA bonds are the best investment based on lack of defaults.
(e) junk bonds default at the same rate as investment grade bonds.
2. A bond's expected return should be related to its
(a) unique risk. (b) total company assets.\
(c) systematic risk. (d) unsystematic risk.
(e) financial leverage.