Name: Vinch BUSINESS Which of the following events would make it more likely that a company would call its outstanding callable bonds? The company's bonds are downgraded b. Market interest rates rise sharply. c. Market interest rates decline sharply. d. The company's financial situation deteriorates significantly Inflation increases significantly 13.PNC Bancorp's 15-year bond with a face value of $1,000 currently sells for $850. Which of the following statements must be CORRECT? a b. c. d e. The band's coupon rate exceeds its current yield. The bond's current yield exceeds its yield to maturity. The bond's yield to maturity is greater than its coupon rate. The bond's current yield is equal to its coupon rate. If the yield to maturity stays constant until the bond matures, the band's price will remain at $350. 14. With regards to corporate bonds, high yield (or "junk 7 bonds generally have the following characteristics when compared with senior debt: Have less credit risk, higher priority of claims, and are more often collateralized. Have more credit risk, higher priority of claims, and are more often not collateralized Have less credit risk, a higher priority of claims, and are more often not collateralized d. Have more credit risk, lower priority of claims, and are more often not collateralized. None of the above. 15. During the semester, CoreSites Realty - a major industrial real estate company issued preferred stock in order to raise additional capital. All of the following are investment attributes (characteristics) of preferred stock except: a. They have no voting rights, except in some instances where dividend payments haven't been made. b. Preferred stock is technically classified as a debt security. C Dividend payments on preferred stock must be made prior to dividends on common stock. in a liquidation of a company, preferred stock receives preference over common stock. e. Only @) and (b) d