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QUESTION 1 Suppose you have purchased a bond that has a coupon rate of 5% with a face value of $1000 and a required rate
QUESTION 1 Suppose you have purchased a bond that has a coupon rate of 5% with a face value of $1000 and a required rate of return is 7%. This bond is an example of discount bond. True False QUESTION 2 A lower coupon and a higher maturity indicate less sensitivity to interest rate changes. True False QUESTION 3 An example of a positive covenant, in a bond indenture, a bank can state condition that the company that issued the bond, should maintain their current ratio to a minimum of 2 times True False QUESTION 4 You are valuing the shares of AppNexus Technology Inc. The company belongs to a hi-tech growing industry. You will use zero growth rate method to value the shares. True False
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