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19) Bonner Metals wants to issue new 20-year bonds. The company currently has 8.5 percent bonds on the market that sell for $994, make semiannual

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19) Bonner Metals wants to issue new 20-year bonds. The company currently has 8.5 percent bonds on the market that sell for $994, make semiannual payments, and mature in 7 years. What should the coupon rate be on the new bonds if the firm wants to sell them at par? A) 8.75 percent B) 9.23 percent C) 8.41 percent D) 8.62 percent E) 8.87 percent 0 Which of the following statements best describes what you should expect if you randomly select stocks and add the to your portfolio? a. Adding more such stocks will reduce the portfolio's unsystematic, or diversifiable, risk b. Adding more such stocks will increase the portfolio's expected rate of return. c. Adding more such stocks will reduce the portfolio's beta coefficient and thus its systematic risk d. Adding more such stocks will have no effect on the portfolio's risk. e. Adding more such stocks will reduce the portfolio's market risk but not its unsystematic risk

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