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10. The minimum rate of return necessary to attract an investor to purchase or hold a security is referred to as the a) Stock's beta

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10. The minimum rate of return necessary to attract an investor to purchase or hold a security is referred to as the a) Stock's beta b) Investor's risk premium c) Investor's required rate of return d) Risk-free rate 11. Which of the following bond premium provisions will make a bond more desirable to investors, other things being equal? a) The bond is convertible b) The bond is callable c) The coupon rate is low d) The bond is subordinated 12. A corporate bond has a coupon rate of 9%, a yield to maturity of 11.1%, a face value of $1000, and a market price of $850. The annual interest payment is: a) $90.00 b) $109.00 c) $76.50 d) $111.00

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