6 An unsecured bond (no specifc assets backing it) is termed a b debenture indenture junk corporate bond d 7 Relative to the term structure of interest rates, which of the following is NOT a component of the determinants of a bond yield a b inflation premium interest rate risk premium default risk premium liquidity premium all of the above are determinants d 8 Generally speaking in a normal inflation environment, yields on short term treasures a b are the same as longer term treasures because of the low default risk are higher than longer tem treasuries because of administrative costs are lower than longer term treasuries because of lower interest rate risk C 9 For which of the following methods of obtaining capital can a company get tax benefits (deductions)? a b d debt preferred stock common stock internal equity none of the above e 10 K.L. Duckworth Inc is considering investing in a project named KUWTK with the following cash flows: 0 $ 1 $ 2 $ 3 $ 4 $ 5 $ (460,000) 130,000 143,000 157,300 173,030 190,333