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G H I A B C D F Put an X in the box which states the correct answer below. If a company issues bonds
G H I A B C D F Put an X in the box which states the correct answer below. If a company issues bonds at a premium, the investor will pay More Less than the face amount, to buy the bond. 6 7 If a company issues bonds at a discount, the investor's yield to maturity on the bonds will be More Less than the coupon interest rate if they hold the bonds until the maturity date. 8 9 10 Company F issues one bond to an investor at a price of $1,010. The bond pays 5% interest 11 annually. 12 13 Does the bondholder earn More, or Less, 5% on their investment, if they hold the 14 bond to the maturity date? More Less 15 16 List some reasons a company's bonds might not sell at par ($1,000 per bond) on the day 17 the bond issue closes. 18 19 1 20 2 21 3
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