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A 4-year bond with face value of $1000 and coupon rate of 3% pays out coupons semi-annually. Market yield on similar securities is 3% per half-year. What should the bond sell for? a. $1000.00 b. $ 894.7046 O c. $872.047 O d. $105.4092 A firm wants to raise $150000. They plan to issue coupon bonds with 7 years maturity, face value of $1000, and a coupon rate of 7% (annual coupons). The yield on similar securities is 2.5%. How many bonds do they have to sell to fully cover their funding need? a. 150 O b. 171 O C. 117 O d. 105 You have $1000 to invest for the next year and you are considering three alternatives: 1) A money market fund with an average maturity of 30 days offering a current annualized yield of 3%. 2) A one-year savings deposit at a bank offering an interest rate of 4.5% 3) A 30-year Australia Government Bond offering a yield to maturity of 6% per year Based on your research, you forecast the government will pursue an expansionary fiscal policy in the near future. In light of your expectations and the investment alternatives, you choose to? a. Invest in the 30-year Australia Government Bond because you expect they will increase in price by the end of the year following the decrease in interest rate induced by the fiscal policy change O b. Invest in the money market fund because you want to be able to reinvest your money at higher interest rates resulting from the change in fiscal policy C. Place your money in a savings deposit at a bank because you do not expect any interest rate changes Od. None of the other options Incumbent company's patent on product X is about to expire. Which of the following is likely to happen following its expiry? a. An increase in profit margins for companies producing product X b. Reduction in the price of product X O c. Reduction in sales of Product X O d. Reduction in competition in the market for product X