In case of a bankruptcy, bond holders would eventually receive: A fraction of company's residual value. The market value of their bonds. The face value of their bonds. Would be allowed to convert their bonds to common shares. Question 26 (1 point) J&J Manufacturing just issued a bond with a $1,000 face value and a coupon rate of 7%. If the bond has a life of 30 years, pays annual coupons, and the yield to maturity is 6.8%, what will the bond sell for? $975.18 $1,000.00 $1,025.32 $1,087.25 $1,111.81 You consider two bonds ( A and B ) that are identical (same company, same maturity, same coupon, etc.). The only difference between the two is that Bond A is retractable (Callable). We can state that: expected return on Bond A is superior relative to the expected return on Bond B. The expected return on Bond A is inferior relative to the expected return on Bond B. The expected return on Bond A is equal to the expected return on Bond B. None of the answers is correct. Question 24 (1 point) Among following statements concerning zerocoupon bonds, which one is false? The closer is the maturity; the smaller will be the gap between price and face value. The closer is the maturity; the larger will be the gap between price and face value. It is always sold at discount. Its duration is equal to its maturity