Question 23 1 pts The legal agreement between the corporation and the creditors involved in an issue of debt is: Debenture Articles of Incorporation Call Provision Indenture Question 24 1 pts What should you pay for a semiannual bond that has a coupon rate of 7 percent, has a face value of $1000, matures in 7 years, and has a market rate of return equal to 8%? $900.18 $910.14 $875.34 $976.38 $947.18 Question 25 1 pts Dizzy Corp. bonds have a coupon rate of 15% paid semiannually, have two years remaining to maturity, and are currently priced at $980 per bond. What is the yield to maturity? 16.87% 15.99% 16.21% 15.00% 16,4584 Question 26 1 pts Which of the following events would make it more likely that a company would call its outstanding bonds (i.e., use the call provision)? Interest rates rise sharply Inflation increases significantly Interest rate decline sharply The company's bond ratings are upgraded The company's stock price declines Question 27 1 pts Which of the following risks do bond ratings specifically attempt to assess? Interest rate risk Unsystematic risk Beta risk Call risk Default risk Question 28 1 pts The (intrinsic) value of any asset or investment opportunity can be estimated by determining the future cash flows associated with the asset and then discounting them back to the present. True False