1) If an acquisition is completed using a cash payment, then the acquisition is

Multiple Choice

• a tax-free transaction as no capital gains or losses are recognized.

• viewed as exchanging of shares and is not taxed.

• None of these options are correct.

• taxable.

2) SEC registration is not required when a company makes

Multiple Choice

• a private placement of securities.

• a public offering of securities issue having a value less than $5 million and a maturity less than nine months.

• both a private placement of securities and a public offering of securities issue having a value less than $5 million and a maturity less than nine months. .

• an issue of debt with a maturity less than nine months.

3) A 12-year German government bond (bund) has a face value of 200 and a coupon rate of 7% paid annually. Assume that the interest rate (in euros) is equal to 6.20% per year. What is the bond's PV? (Do not round intermediate calculations. Round your answer to 2 decimal places.)