1. Which of the following bond ratings would be associated with the lowest interest rate? . b. BBB C. C d. CCC 2. The relationship between maturity and interest rates (yields) is the a. coupon rate b. Fisher Effect c. default risk d. yield curve 3. If a corporation with an issue of debentures outstanding has to issue subordinated debentures, this is due to a(n) a. income bond b. restriction on dividend payments c. put feature d. negative pledge clause 4. The usual method used by corporations in issuing new securities is a a private placement b. participating feature c. negotiated underwriting d. best efforts arrangement 5. A bond with a $1,000 par value has a coupon of 8.4%. The price (value) of the bond is $1,025. What is the bonds current yield? a. 4.2% b. 8.4% C. 8.2% d. Current yield cannot be computed from the information provided