6,7,9

Chapter & Characteristics and V 321 3. Suppose a company simultaneously sold two long term debt issues at par: 9% per en senior debars and Ne wbordinated debentures. What risk return trade-off would be faced by an investor who was considering one of these i s ? 4. What is the relationship betwem par value, market value and book value for the a long term debe Preferred stock 5. Define the following terms asociated with preferred stock Cumulative feature Participation C are & What viables must be known for estimated in applying the capitation of cash flow method of valuation to a physical or financial amet? 7. Define the following The r oof Market What is the primary difference between the book wale and the market value of an Describe the relationship between the coupon a nd the date of tum that will rest in a boodschling A discount Pawe A premium 10. How does the teabed from the coupe y document 11. Under what it will be s e ed below -to-maturity 12. In what was presta r togter te what was similar to come stock? 11. Explain why hedhesh perg ud poisonina benda 14 Explain what is meant by 1 wa bodabe de s edicecurity when the vild yan g b ertime depending on the market price of the bond 14 Describe the be a ch of the following types of bonds Hosting me bends Zero coupon bels Come the b Sop B firms What a nding for Delta Airlines and Southwest Airlines. Use the from your heary to dermine the band rating of each of these can you che for the delerences in bodring between the 1 6-8 Self-Test Problems STI. What is the current value of a 51.000 par vale per where a 10 percent annual rate of return the perp be n e nd im