Policies that limit the discretion of managers as a way of protecting bondholder's interests called restrictive convenants. debentures. sinking funds bond indentures. A secured bond is backed by the general creditworthiness of the borrower. an Insurance company's financial guarantee. the expected fulure earnings of the borrower. specific collateral. What an old bond's market value is above its per value, the bond is selling at . This occurs because the old bond's coupon rate is the coupon rate of new bonds with similar risk. premium; below premium; above discount; below discount; above A share of common stock in a firm represents an ownership interest in that firm. A share of preferred stock is as much like a bond as it is like common stock. (I)is true. (II) false. (I) is false. (II) true. Both are true. Both are false. Preferred stockholders hold a claim on assets that has priority over the claims of both common stockholders and bondholders. neither common stockholders nor bondholders. common stockholders, but after that of bondholders. bondholders, but after that of common stockholders. According to the Gordon grow th model, what is an investor's valuation of a stock whose current dividend is $1.00 per vear if dividends are expected to grow at a constant rate of 10 percent over a long period of time and the investor's required return is 11 percent? $110 $100 $11 $10 $524