Remaining Time: 1 hour, 25 minutes, 07 seconds. Question Completion Status: QUESTION 11 Which of the following characteristics apply to debt? 1. Purchasing a bond grants the buyer a proportional ownership Interest in the firm. M. Payments to debt-holders, Le. Interest payments, are tax deductible to the firm. II. Generally, bondholders expect high-risk and unknown annual interest payments and principal IV. Excessive levels of debt can lead to financial distress or bankruptcy. I & ll only HI & IV only. II & ill only. I, III, & IV only I, II, III, & IV QUESTION 12 Similar to Stock Priors, Bond Values are derived as the discounted value of all cash flows received from bond ownership in exchange for the Bond's Price (PV). The two main cash flows an investor receives in exchange for purchasing a bond are: The coupon or Current Yield (CY) and the Dividend Yield (DY). Interest or Coupon Payments (PMT) throughout the bond's life expand and the repayment of the principal or Face Value at the bond's maturity (PV). Dividends (Div.) in addition to retained earnings (ARE). The Interest Tax Shield (ITS) and the Depreciation Tax Shield (DTS). Dividends (Div) and the sale price of the stock to realize its Capital Gains (CG) when the stock is sold. QUESTION 13 Le Chiffre Corp. 10-year bonds yield seven percent; Maryland's 10-year Municipal Bonds consistently generate an annualized return of 5.02 percent. For a Maryland's resident Click Save and submit to save and submit. Click Save All Answers to save all answers Save Al Answers