A graph of the yield relative to the length of maturity is called the term structure of interest rates. Which of the following (by selecting a letter attached to it) is an illustration of "inverted" yield curve? a. b. c. d. None of these Global Outfitters Ltd. has a 6% coupon corporate bond with a face value of $1, 000, paying semiannually, for 17 more years. If other similar corporate bonds are paying 7%, then this bond will be a: a. a par bond b. a premium bond c. a discount bond d. a zero coupon bond Suppose that the credit rating for Global Outfitters' corporate bond falls from A to BBB because of a decline in sales. In that case we might expect that: a. the price of the bond would be unaffected. b. the price of the bond would rise. c. the price of the bond would fall. d. the price of the bond would at first rise, but then fall as the bond matures. XYZ, Inc. has bonds on the market with exactly 10 years to maturity. XYZ bonds has a Coupon Rate of 9 percent and a current price of 92% of its face value of $1, 000. The bonds make only ANNUAL payments. What must be the Current Yield (that is, the annual coupon payment divided by its current price) on the XYZ bonds? a. 9.71% b. 8.53% c. 8.82% d. 10.32% The 7 percent coupon bonds of the Media Printing Co. are selling for 102 percent of par value. The bonds mature is 6 years and pay interest semiannually. These bonds have current yield of percent and a yield to maturity of percent. a. 6.86; 6.59. b. 6.86; 6.23. c. 6.37; 6.23. d. 6.59; 6.65. Who typically vote on who are to be directors of the common? a. the senior bondholders b. preferred shareholders c. the shareholders d. the employees