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Energy Australia has issued a five-year bond with a coupon rate of 8% and a face value of $5,000. The yield to maturity is 10%.

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Energy Australia has issued a five-year bond with a coupon rate of 8% and a face value of $5,000. The yield to maturity is 10%. What is the value of the bond? Select one: a. $3,050.00 b. $4,620.94 c. $5,399.37 d. $5,000.00 Next page Which of the following is not a consequence of bankruptcy? Select one: O a. Can still gain employment, but will receive reduced superannuation contributions. b. Cannot travel overseas except only with the permission of the trustee. c. Being barred from being corporate directors. d. Severe restrictions are placed on future borrowing capacity. You Beaut is a high growth company and expects to grow at a constant rate of 10%. The company just declared a dividend of $2. If the required rate of return on such shares is 15%, what will the share price be today? Select one: O a. $40 O b. $44 O c. $22 d. $20 The NSW Government is planning to issue 30 year bonds with a coupon rate of 4% with annual coupon payments. The yield to maturity is 2.5%. What will be the bond price? Select one: a. $1,170.73 b. $740.62 c. $1,315.26 d. $1,313.95 Which of the following is true with regards as to how unsecured loans are different from secured loans? Select one: a. Secured loans are offered at higher interest rates than unsecured loans. b. Unsecured loans offer more tangible assets as a secondary source of repayment compared to secured loans. O c. Secured loans offer protection for the lender for only the principal loan amount, while unsecured loans do not have protection for the lender on the principal loan amount. d. Secured loans offer protection to the lender with a link to a tangible asset of the borrower whereas unsecured loans do not

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