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Please answer these questions in the next 30 MINUTES. Please explain your answers so I can understand how you solved the problem. Thank you! Question

Please answer these questions in the next 30 MINUTES. Please explain your answers so I can understand how you solved the problem. Thank you!

Question 1. Which of the following is fixed (e.g., cannot change) for the life of a given bond? (Points : 4)

current price current yield YTM coupon rate

Question 2.2. How much would an investor expect to pay for a $5,000 par value bond with a 9% annual coupon that matures in 10 years if the interest rate is 7%? (Points : 4)

5702.36

4374.25

3811.42

3584.55

Question 6.6. If a bond is priced at par value, then: (Points : 4)

it has a very low level of default risk.

its coupon rate equals the market rate.

it must be a zero-coupon bond.

the bond is very close to maturity.

Question 9.9. The value of common stock will likely decrease if: (Points : 4)

the investment horizon decreases. the growth rate of dividends increases. the cost of equity increases. dividends are not discounted to the present.

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