81. What of the following best describes interest rate risk? A. The risk that bond prices will decline as interest rates rise. B. The risk that bond prices will decline as interest rates decline. C. The risk that the issuer will not be able to make timely payments of interest and/or principal. D. The risk that bonds will be worth less as inflation rises E. The risk that the coupon may decline if interest rates deoline. 32. The ageney problem is caused by A. Securities & Exchange Commission (SEC) agents auditing the financtal tements Auditors and the production of understandable inanoial statements. C. Bonuses paid to management for performance-based oompensation D. Separation of ownership and management. E. The tax deductibility of interest. 33. Who is responsible for hiring senior management and setting thetr compensation? A. President. B. Shareholders. C. Board of Directors D. CEO 84. Which of the following is related to a primary market? A. NYSE B. NASDAQ .IPO D. OTC 36. When financial ratios are compared to financial ratios from previous years, what kind of analysis is it? A. Cross-Sectional B. Cross-time C. Time Series D. SIC Code 86. Piccadilly Savings and Loan offers a savings account with a quoted rate at 12%, which is compounded semiannually. Thames Embankment Bank offers a oompoting acoount with dally compounding. What rate doea Thames have to offer in order to produde t the same effective interest rate? . 11.250% B. 11.666% C. 11.853% D, 12.360%