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11 please! but 19 if you are feeling generous mpact do changing erest rates have on the price of lo 10. What is the difference
11 please! but 19 if you are feeling generous
mpact do changing erest rates have on the price of lo 10. What is the difference between the following yields: coupon rate, current yield, yield to maturity? (L016-2) 11. How does the bond rating affect the interest rate paid by a corporation on its bonds? (LO16-2) 12. Bonds of different risk classes will have a spread between their interest rates. Is this spread always the same? Why? (LO16-2) 13. Explain how the bond refunding problem is similar to a capital budgeting decision. (L016-3) 14. What cost of capital is generally used in evaluating a bond refunding decision? Why? (L016-3) 15. Explain how the zero-coupon rate bond provides return to the investor. What are the advantages to the corporation? (L016-2) 16. Explain how floating rate bonds can save the investor from potential embarrassments in portfolio valuations. (L016-2) 17. Discuss the advantages and disadvantages of debt. (L016-1) 18. What is a Eurobond? (L016-1) 19. What do we mean by capitalizing lease payments? (L016-4)
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