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Question 28 When a corporation issues a new corporate bond, the higher the bond's rating: Not yet answered Points out of 1 P Flag question

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Question 28 When a corporation issues a new corporate bond, the higher the bond's rating: Not yet answered Points out of 1 P Flag question Select one: O A. The higher the coupon interest rate that must be paid on the bond O B. The lower the coupon interest rate that must be paid on the bond O C. The coupon rate is totally unrelated to the bond rating O D. The bond will sell at a premium to its par value on the day of issue. Question 29 Not yet answered Ajax Corporation has a bond with a coupon rate of 11.5%, maturing in 15 years at a value of $1,000. The bond makes annual interest payments and has a current market price of $920. What is the nominal yield for the Ajax Corporation bond? Points out of 1 P Flag question Select one: O A. 10.25% O B. 11.50% O C. 12.50% O D. 13.50% Question 30 The disadvantages of debt to the corporation include all but which of the following? Not yet answered Points out of 1 P Flag question Select one: O A. Debt may have to be paid pack with "cheaper" dollars. O B. Interest and principal payments must be met on time. O C. Loan covenants may place costly restrictions on the firm. O D. Too much debt may cause a decrease in the firm's stock price

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