13. A _______ PE may indicate that the market feels the firm's earnings are very _______ risk and is therefore willing to pay a ________ for them.

A) high; low; premium

B) high; high; discount

C) low; low; discount

D) high; high; premium

E) #1; #2; more of #1!

14. If a $5,000 coupon bond has a coupon rate of 13 percent, then the coupon payment every year is

A) $650.00

B) $1,300.00

C) $130.00

D) $13.00

E) $0.07

15. An $8,000 coupon bond with a $400 annual coupon payment has a coupon rate of

A) 5 percent.

B) 8 percent.

C) 10 percent.

D) 40 percent.

E) 50 cents

16. Suppose you are holding a 5 percent coupon bond maturing in one year with a yield to maturity of 15 percent. If the interest rate on one-year bonds rises from 15 percent to 20 percent over the course of the year, what is the yearly return on the bond you are holding?

A) 5 percent

B) 10 percent

C) 15 percent

D) 20 percent

E) 1965 Percent