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Financial Economics multiple choice questions only one alternative is correct to each picture 9) A coupon bond pays the owner of the bond A) the

Financial Economics multiple choice questions only one alternative is correct to each picture

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9) A coupon bond pays the owner of the bond A) the same amount every month until the maturity date. B) a fixed interest payment every period, plus the face value of the bond at the maturity date. C) the face value of the bond plus an interest payment once the maturity date has been reached D) the face value at the maturity date. E) none of the above. 10) If a $5,000 coupon bond has a coupon rate of 13 percent, then the coupon payment every year is A) $650. B) $1,300 C) $130. D) $13. E) None of the above. 11) An $8,000 coupon bond with a $400 annual coupon payment has a coupon rate of A) 5 percent. B) 8 percent. C) 10 percent D) 40 percent. bonds become 12) As the price of a bond and the expected return more attractive to investors and the quantity demanded rise rises. A) falls, rises B) falls, falls C) rises; rises D) rises, falls

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