Please Fill the blank from 7.1-7.6

following, fill in the blanks with the appropriate term(s). For questions that give you two the fo t to choose from, circle the most appropriate. 7.n The value of a bond (or of any asset) equals the (7.1) The of the future to the holder. Bond valuation requires that we determine the relevant and the appropriate market rate of interest, or future bond, then theof the future for the is calculated using the appropriate opportunity cost, or (2 points) (7.2) bankruptcy. Some debt is governs priority of payment to the creditors in the event of i.e. other creditors must be repaid first. (2 points) (7.3) All else equal, the longer the time to maturity, the (greater/lesser) the interest rate risk. All other things being equal, the lower the coupon rate, the (greater/lesser) the interest points) Unless the market (7.4) The yield to maturity for a bond is the bond's value of the bond is equal its a(n) to itsthe yield to maturity is determined by using approach. (2 points) provision allows the firm to repurchase the entire debt issue before (7.5) A maturity. The call price equals the of the bond plus a Often, bonds cannot be called for several years; this is a bonds are call, and the during this period. (2 points) of the future (7.6) The value of a share of common stock equals the to the holder. The relecant cash flows for common stock are future value of a share. (2 points) and the future