1. South Park Company issued a 6% bond three years ago at par value. The market interest rate on 15) comparable bonds today is 5%. The Franklin Company bond currently pays ________ a year in interest and the bond sells at a ________.
A) $50; premium B) $60; premium C) $60; discount D) $50; discount
2. If two stock have zero correlation, then the various combination of portfolio of these two stocks will no help to lower the risk.
True
False