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6. For a corporate bond the provision which allows a company to pay off its bonds early (if the company wishes) is the conversion feature

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6. For a corporate bond the provision which allows a company to pay off its bonds early (if the company wishes) is the conversion feature trustee a call feature 7. Which of the following is not a type of equity financing? debentures b. common stock d. preferred stock d. retained earnings 8. A preferred stock can be turned into a corporation in exchange for shares of common stock. What determines how many shares of common stock are received? a. the participating feature h the put feature c. the conversion feature d. the cumulative feature 9. The legal document in which the provisions of a corporate bond are spelled out is the a. debenture b. proxy c. senior mortgage (d) Indenture 10. The lower the liquidity of a bond the a. lower the interest rate b. higher the interest rate 11. A corporate 6.2% coupon bond has a yield to maturity of 8.5%. A bondholder will receive how much in interest each year? a. $62.00 b. $85.00 c. $6.20 d. $8.50 Scanned with CamScanner 11. A corporate 6.2% coupon bond has a yield to maturity of 8.5%. A bondholder will receive how much in interest each year? a. $62.00 b. $85.00 c. $6.20 d. $8.50

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