9. The following entities issue bonds to raise long-term loans except: a. The federal government b. State and local governments c. Companies d. Individuals 10. If the yield to maturity (the rate of return) of a bond is lower than its coupon me, the bond should be selling at a discount, ie, the bonds market price should be less than its face maturity) value selling at a premium; i.e., the bond's market price should be greater than its face value selling at parie.. the bond's market price should be the same as its face value. d. purchased because it is a good deal. 11. A 10-year bond with 8 coupon rate and SIXO) face value yields 105 APR. Assuming annual coupon payment, calculate the price of the bood. a $935.82 b. S951.96 c. $1000.00 d. None of the above 12. Dixson Software Corporation's bond is currently selling at a discount in the financial markets If the bond's yield to maturity is 9.5 percent, which of the following is true about its coupon rate? less than 9.5 percent greater than 9.5 percent equal to 9.5 percent equal to 0 percent 13. Shareholders exert control of the management of the firm by a. running the daily operations of the firm. b. directly replacing management with themselves. c. buying shares in an IPO at a discounted price. d. electing board members who can replace management. e. None of the above. 14. The last dividend paid by Johnson Company was $2.00. Johnson's growth rate is expected to be a constant 10 percent for 2 years, after which dividends are expected to grow a rate of 6 percent forever. What is the expected dividend in third year? a $2.00 b. $2.46 c. $2.57 d. $2.60 e $2.83