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Question 5 7 pts Which is a true statement about different kinds of bonds? Everything else equal, straight bonds should have a higher coupon rate
Question 5 7 pts Which is a true statement about different kinds of bonds? Everything else equal, straight bonds should have a higher coupon rate than callable bonds. Everything else equal, debentures should have a higher coupon rate than bonds with physical collateral. Everything else equal, senior bonds should have a higher coupon rate than subordinated bonds. Everything else equal, bonds with a higher rating should have a higher coupon rate than bonds with a lower rating. Question 6 7 pts A firm will pay out an annual dividend of $4 next year. If the dividend will grow by 5% annually forever, and the stock is currently selling for $35, what is the required rate of return for the stock? 11.43% 12.00% 17.00% 16.43%
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