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Short multiple choice questions, help please. Search A uranium producing company issued bonds 3 years ago. The bonds will mature 7 years from now. A
Short multiple choice questions, help please.
Search A uranium producing company issued bonds 3 years ago. The bonds will mature 7 years from now. A major nuclear accident occurs today. Uranium is used as a fuel in nuclear plants. What will be the effect on the price of the company's bonds? Select one: O a. The price will go up. o b. It does not make sense to talk about a price in such dire circumstances. O c. The price will go down. O d. The price will remain the same. 7 Q Search Determine whether bond #2 below is trading at a premium, at par, or at a discount? Bond No. Face Value Redemption Coupon Rate Years to Redemption Yield Rate 1. $1000 At Par ja = 8 10 12 = 10% 2. $5000 At Par ja = 129 25 ja = 9% 3. $2000 At Par = 6,5% 5 j2 = 6.5% 4. $1000 At 105 10 ja = 5% )2 = 5% Select one: O a. This bond is trading at a discount. O b. This bond is trading at a premium. O c. This bond is trading at parStep by Step Solution
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