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Short multiple choice questions, help please. 2 An aeronautic company issued bonds 7 years ago. The bonds will mature 3 years from now. The company
Short multiple choice questions, help please.
2 An aeronautic company issued bonds 7 years ago. The bonds will mature 3 years from now. The company announces it has just won its largest contract ever for the production of planes. What is the consequence on the coupon rate of the company's bonds? Select one: O a. The coupon rate will remain the same. O b. The coupon rate will go down. O c. The coupon rate will go up. O d. It does not make sense to talk about a coupon rate in such great circumstances. D 3 + A gold mining company issued bonds 5 years ago. The bonds will mature 5 years from now. News breaks out that the company's flagship mine just got irreparably flooded. What will happen to the yield on the company's bonds? Select one: O a. The yield will go down. O b. It does not make sense to talk about a yield in such dire circumstances. O c. The yield will remain the same. O d. The yield will go upStep by Step Solution
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