question 20

False QUESTION 19 The firm where your mother works issued a bond that has 12 years to maturity, 8 coupon rate of 5.22% (paid semi-annually), and face value of $1000. You knaw rial the yield-to-maturity on this bond is 6.27%. What will be the price of this bond? QUESTION 20 QUESTION 21 Assume that an economy exists where there are no taxes, there are no additional costs when a firm gets into financial distress there is na asjmmetric informabon betwoen investors and corporate management, and management is well-ncentivized sech that it is alwayo working hard to maximire shareholder value. in zuch ant economy, a firm exists that has no debt in its capilal structure. This frm's value is thely to go down if it issues dabt and buys buck ahares of stock. True