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1 . The price sensitivity of a bond increases in response to a change in the market rate of interest as the: Group of answer

1. The price sensitivity of a bond increases in response to a change in the market rate of interest as the:
Group of answer choices
Coupon rate decreases.
Time to maturity decreases.
Time to maturity and coupon rate both decrease.
Coupon rate and time to maturity both increase.
2. Forster, Inc. has sales of $900,000, costs of $400,000, depreciation expense of $50,000, interest expense of $50,000, and a tax rate of 30 percent. If the firm paid out $80,000 in cash dividends. What is the addition to retained earnings? $______

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