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finance questions, i need help with these mulitple choice questions. 6. According to your text, the relationship between a bond's price and the yield to

finance questions, i need help with these mulitple choice questions. image text in transcribed
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6. According to your text, the relationship between a bond's price and the yield to maturity: Is an inverse relationship a. b. Is a positive relationship c. Changes at a constant level for each percentage change of yield to maturity d. Changes according to the Dow Jones Stock Index None of the above. e. 7. What business risk do leverage firms in cyclical industries face? The risk of being stricken by lightning a. The risk of inability to compete and sustain earnings growth b. The risk of high profit margin d. The probability of high assets turnover C. None of the above. e. What will happen to the value of a bond when the inflation premium increases? 8. The Required Rate of Return will decrease a. b. The Price of the Bond will increase The Price of the Bond will decrease C. There will be no change in the value of the bond. McGee d. None of the above. e. 10. A $1,000 20-year corporate bond pays $80 annually in interest. Currently, the bond is selling for $830. Why is that? It is because: Market rate plus inflation premium = coupon rate a. %3D Market rate > coupon rate b. Market rate = coupon rate C. %3D d. Market rate

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