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Acompany which issues bends creates a short term liability for itself be creates a dividend paying liability for itself C.creates a short forms for itself

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Acompany which issues bends creates a short term liability for itself be creates a dividend paying liability for itself C.creates a short forms for itself d.creates a long term asset for itself e. creates a long term liability for itself If you buy a bond with a call provision it is because you like an inbuilt call provision in the bond indenture b. you are likely to cart a better yield than its non-callable counterparts your yield will be the same as that of a non-callable bond d. No option is correct 6. your yield is likely to be lower than the non-callable counterparts Reinvestment risk a is applicable mostly to long term debt investments barises because an investor fails to reinvest C. reduces over time All options are incorrect e is pronounced in case of short term equity investments A 15 year 35 municipal bond offers an 8% yield. A 15 year 9%. corporate bond promises a yield of 10%. Assuming a personal income tax rate of 25% 2. The corporate bonds sells at a discount in the market The municipal bond sells for its face value The corporate bond is not an advisable investment as its ather-tax yield is 7.62% d. The municipal bond is a better buy because its after-tax yield is 8% e. All options are correct Annualized yield for a 6-month T-Bill is 3% Annualized yield for a 3-month T-Bil, 3-months from What is the annualized yield for a 90-day T-Bill now? Assume we live in world defined by the Pure Expectations Theory There is missing data in the question 6.3.79% d. 5.73% c. 2.755

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