13. What is the Py of an ondinary a. $15,467.2 b. $24,625.42 . $17,705.88 d. $17,90940 e. $20,351.59 At a rate of 5.0%, what is the future value of the following cash flow stream? wit annuity with 10 payments of $2.700 if the appropriate interest rate is 55%) 14. Years: CFs: $0 575 $225 a. $$52.35 b. $558.70 c $514.26 d. $704.72 e. $634.88 so $300 15. Which of the following events would make it more likely that a company would call its outstanding callable bonds a. The company's bonds are downgraded b. c. d e. Market interest rates rise sharply Market interest rates decline sharply The company's financial situation deteriorates significantly. Inflation increases significantly 16. nde nomlomwhich of the folloving would be most likely to increase the coupon re for a bond to be issued at par a. Adding additional restrictive covenants that limit management's actions b. Adding a call provision. c. The rating agencies change the bond's rating from Baa to Aaa d. Making the bond a first mortgage bond rather than a debenture. e. Adding a sinking fund. A 10-year corporate bond has an annual coupon of 9%. The bond is currenty selling at par(51,000). 17, Which of the following statements is CORRECT a. The bond's expected capital gains yield is zero. b. C. d. The bond's yield to maturity is above 9%. The bond's current yield is above 9%. If the bond's yield to maturity declines, the bond will sell at a discount. e. The bond's current yield is less than its expected capital gains yield 18. Morin Company's bonds mature in 8 years, have a par value of $1,000, and make an annual coupon interest The market requires an interest rate of 7.7% on these bonds, what is the bond's price? payment of$65. a $865.13 b. $1,097.69 $1,069.79 d. $930.25 e. $762.80 19. Adams Enterprises' noncallable bonds currently sell for S$1,030. They have a 15-year maturity, an annual What is their yield to maturity? coupon of $85, and a par value of $1,000 a 9.53% b. 8.15% c. 8.88% d. 8.55% e. 7.41%