1. A bond maturing in ten years is a

1. short-term bond.
2. current bond.
3. long-term bond.
4. non-current bond.

2. If the coupon of a bond is 2%, with coupon payments twice a year, an investor holding $10,000 worth of the bond will receive for the semiannual coupon payment

1. $10.
2. $20.
3. $50.
4. $100.
5. $200.

3. Shareholders have the right to

1. have their shares redeemed by the issuing company.
2. receive dividends.
3. visit the corporate headquarters
4. vote at shareholder meetings.
5. meet with the CEO.

4. If a company's share has a par value of $1, the company can only issue new shares at $1 each.

True/False

5. When the CEO of a company is a shareholder, the company may pay extra dividends to reward the CEO.

True/False

6. bank may reduce the risk of loss from default by obtaining collateral.

True/False

7. When XYZ Co. was established, 1,000 shares were issued to the founders at $100 each. Their business has been a great success and in order to accelerate growth, they are now planning to raise new money by issuing shares to a venture capital fund. The investment bank advising XYZ suggested splitting the existing shares 1 to 100 and then issuing 100,000 new shares to the venture capital at $100 each.

After these transactions: the founders would own(1)________________shares; XYZ would be able to raise $(2)________________; and the valuation of XYZ would be $(3)________________.