A bond issued with a warrant is a bond that: a. The bond issuer can convert into a bond that has a lower coupon rate O b. The bond holder has negotiated for the bond issuer to set aside a portion of the par value of the bonds each year O c. The bond holder can convert the bond into a predetermined number of shares of the common stock of the borrower O d. The bond holder has the right to purchase a predetermined number of shares of the commons stock of the borrower at a predetermined price O e. A bond that has no top on it Darnit Corporation issued 30 year bonds 5 years ago. At the time 5 the bonds were issued, the bonds were rated AA by Moody's bond rating service. Today, Moody's changed its rating on the Darnit Corporation Bonds to A. You would expect the price of the Darnit bonds to: O a. To decrease since a A rating is a lower rating than a AA rating, thus indicating more risk a Ob. To increase since a A rating is a higher rating than a AA rating, thus indicating less risk O c. To remain unchanged, since the bond is already outstanding O d. To remain unchanged, since bond ratings do not influence the price of bonds O e. It is difficult to tell, because no information is given why the rating changed Palmer Products has outstanding bonds with an annual 8 percent coupon. The bonds have a par value of $1,000 and a current price of $1,036.58. The bonds will mature in 11 years. What is the yield to maturity on the bonds? O a. 10.09% O b. 7.50% O c. 4.53% O d. 3.90% O e. 2.54%