18. When the econommy is moving toward a recession, the yieid on riskier bonds will tend to O D. stagnate corporate bonds issued by different companies, one of the key resource of c For risk that can differ widely from company to oompany is their OA. interest rate risk B. purchasing power risk C. detaut risk 20, Emily bought 200 shares of ABC Co stock sor S 29 00 per share or, 60% maon and that her interest costs will be $80 over the holding period. Ignoring commissions on invested capital if the stock price went Assume she holds the stock for one year what is her percentage reburn (Doss) on 60% down 10%? OA. OB. C, D, -16% -32% -19% -10% Two years ago, Mathew purchased a 10 year government bond with a yield of 4.75%. Today the rteres.ate on government bonds with 8 years to maturity is 35% 21. lf Mathew sells his bond today, he most likely wd 0 A, realize a capital loss. B. sell the bond at par value. O C. realize a capital gain. 0 D. sell the bond at face value. 22. When a company, working with an underwriter, offiers the investing public a certain number of shares of its stock at a certain price, the company is making what is known as a OA. public offering. OB, treasury offering. OC. rights offering. O D. stock spin-off Dividend yield is calculated by dividing A, the annual dividend per share by the market price of one share stock. B. the market price of one share of stock by the annual dividend per share. O c. annual dividend per share by earnings per share. 0 D, earnings per share by market price per share. 23