Can you tell if a 5-year, 7%, semi-annual bond with a 7% yield to maturity is trading at a discount, at par or at a premium? B. Par D. No, we cannot tell with the data available A. Discount C. Premium QUESTION 8 2 points Save Answer What is the coverage ratio of a firm with EBIT = 4,200; interest expense = 600; operating expenses = 12,500; principal of debt owed = 10,000; shareholders' expected return of 8%? And what does it measure? D. 0.4; ability to pay the principal amount of debt B. 1.6; ability to cover or pay the operating expenses C. 1.6; ability to cover or meet shareholders' expectation A. 7; ability to pay interest on debt with operating result A perpetuity will pay $1,000 per year, starting five years after the perpetuity is purchased. What is the future value of this perpetuity, given that the interest rate is 4%? A. $20,582 C. $25,000 B. $21,370 D. There is no solution to this problem What is the yield-to-maturity of a 4-year, 4.93%, bond trading at 2% discount? A. 5.50% D. 5.209 B. 5.4096 C.5.30% QUESTION 12 2 points Save Answer Agency problems are best defined as: B. Problems arising due to potential misalignment between the interests of owners, creditors, and managers. C. Problems arising due to the complete alignment of the interests of owners, creditors, and managers. D. Issues surrounding whether to outsource production to an external agency. A Difficulties arising in dealings with real estate agencies