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1. A corporation has 10,000 bonds outstanding with a 6% annual coupon rate, 8 years to maturity, a $1,000 face value, and a RM 1,100

1. A corporation has 10,000 bonds outstanding with a 6% annual coupon rate, 8 years to maturity, a $1,000 face value, and a RM 1,100 market price. What will be market value and cost of debt?

A. MV of Debt (60,000);Cost of debt (11.78%)

B. No answer

C. MV of Debt (RM11,000,000);Cost of debt (4.48%)

D. MV of Debt (1,000,000);Cost of debt; (9.99%)

E. MV of Debt (RM60,000);Cost of debt (4.48%)

2. Several well diversified stakeholders want to measure the risks during project's appraisal and that systematic risk is associated with or known to:

A. Industry Risk

B. Expected Risk

C. IRR

D. CAPM Beta Risk

E. Returning Risk

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