21. The bond is selling at a premium because elsewhere investors can only earn a higher return on other bonds of similar features and quality. The size of the premium depends on just the creditworthiness of the borrower or bond issuer. The first statement is......, while the second statement is.... a. True, false b. False, true c. True, true (d) False, false 22. Gordon Industries has 6 percent coupon bonds outstanding with a face value of $1,000 and a market price of $959.21. The bonds pay interest semiannually and have a yield to maturity of 8 percent. How many years will it be until these bonds mature? a. 9.08 years b. 7.5 years c. 10.0 years (d) 4.54 years e. 13.0 years 23. To price a financial asset at the current time, which of the following is true? Widentify all past cash flows from the asset (b) calculate the future value of all expected the cash flows c. discount all expected future cash flows from the asset at an appropriate rate to the current time. d. discount all past cash flows earned from the asset to the present time. 24. A share of perpetual preferred stock pays an annual dividend of $6 per share. If investors require a 12 percent rate of return, what should be the price of this preferred stock? -i. $57.25 (b) $50.00 c. $62.38 divicisinare d. $45.75 c. $41.64 25. The following factors are needed to be accounted for in calculating the present value of a corporate bond. a. coupon payment and face value b. matoficy date c. yield to maturity (d) (a) and (c) only c. (a), (b), and (c)