Question 16 of 25 1 Points Your firm is issuing a five-year semi-annual coupon bond that has been rated BBB by S&P. Currently, the average BBB bond has a credit spread of 200 basis points. The yield to maturity of a five-year Treasury semi-annual coupon bonds is currently 1.8%. If you price these bonds at par, which of the following coupon rates would you have to set? OA. 1.6% OB.3.8% C. 1.8% OD.2% Reset Selection Question 17 of 25 1 Points Which of the following statements are true? i. A fall in bond prices causes interest rates to increase. il. You would consider a fixed overhead cost when making a capital budgeting decision. ill. An inverted yield curve is typically considered to be an indicator of a future recession. iv. One explanation of an upward sloping yield curve is that longer maturity bonds are considered more risky to investors. O A. I,IN OB. III, IV C. I, II, IV OD. II, III, IV Reset Selection