Aaron Corporation has two bonds outstanding. Both bonds mature in 10 years, have a face value of $1,000, and have a yield to maturity of 8%. One bond is a zero coupon bond and the other bond has a coupon rate of 8%. Which of the following statements is true? | ut of question Select one: a. Both bonds must sell for the same price if markets are in equilibrium. b. All rational investors will prefer the 8% bond because it pays more interest. C. The zero coupon bond must have a higher price because of its greater capital gain potential d. The zero coupon bond must sell for a lower price than the bond with an 8% coupon rate. 2 Which of the following statements concerning junk bonds is most correct? Guest on Select one: a. Junk bonds are priced higher than AAA-rated bonds because junk bonds are more riksy b. A..A rational investor will always prefer a AAA-rated bond to a junk bond c. Junk bonds may also be called low-yielding securities d. Junk bonds have higher interest rates than AAA-rated bonds because of the higher risk 13 COT. Inc. expects its current annual s3 per share common stock dividend to remain the same for the foreseeable future. Therefore, the value of the stock to an investor with a required return of 15% is Ed out of Select one: a. $ 3.53 question b. S20.00 c. $ 4.50 d. $45.00