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4. coupon rate E. 5. Assume that you are considering investing in a bond with the following characteristics: par value $1.000 596 per year payment

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4. coupon rate E. 5. Assume that you are considering investing in a bond with the following characteristics: par value $1.000 596 per year payment schedule semiannual maturity date 5 years For this bond, your required rute of return is 6.5% per year. Which of the following is true of the bond? A The semiannual coupon payment is $25. B. The semiannual coupon payment is $50. c. The semiannual coupon payment is $65. D The bond will make 5% coupon payments. None of the above is true. Refer to the bond described in question #14 above. Given that the bond pays a 5% annual coupon rate and you have a 6.5% annual required return, which of the following statements is true? A. The value of the bond will be greater than $1,000. . The value of the bond will be equal to $1,000 C. The value of the bond will be less than $1.000 D. The value of the bond will be zero. E None of the above is true. Refer again to the bond described in question #4. If the market price of this bond is greater than the value, then: A. the yield-to-maturity will be greater than the 6.5% required rate of return. B. the yield-to-maturity will be equal to the 6.5% required rate of return. C. the yield-to-maturity will be less than the 6.5% required rate of return. D. the yield-to-maturity will equal 5%. E. None of the above is true of the yield-to-maturity. 7. Which of the following bonds has the least default risk? A. a bond with a AAA rating from Standard & Poor's B. a bond with a CCC rating from Standard & Poor's C. a bond with a BB rating from Standard & Poor's D. Standard & Poor's ratings are unrelated to default risk. E. It is impossible to tell from the information given

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