TB MC Qu. 08-13 Aspens is preparing a bond offering... Aspens is preparing a bond offering with interest annually. Which one of the following statements is correct? Assume a face value of $1,00. coupon rate of 5.5 percent. The bonds will be repaid in 10 years. The company plans to issue the bonds at par value and pay Multiple Choice The bonds will pay 19 interest payments and one principal payment. The bonds will initlally sell at a discount At maturity, the bonds will pay a final payment of $1,027.50. The bonds will pay twenty equal coupon payments. At issuance, the bond's yleld to maturity is 5.5 percent. TB MC Qu. 08-16 Interest rate risk as the... as the time to maturity decreases and Interest rate risk as the coupon rate decreases. Multiple Cholce decreases; increases decreases; decreases increases, increases increases; decreases Increases; Is unaffected TB MC Qu. 08-26 Bond dealers report all of their... Bond dealers report all of their trading information using the system known as: Multiple Choice SEC-Bond. NASDAQ. FED trades. FINRA. TRACE. TB MC Qu. 08-27 Most of the trading in bonds... Most of the trading in bonds is conducted: Multiple Choice in person on the floor of the NYSE. by dealers located in Chicago. by brokers on various trading floors. electronically. on the trade floor in Washington, DC. TB MC Qu. 09-05 The constant dividend growth... The constant dividend growth model: Multiple Choice Is more complex than the differentlal growth model. requires the growth period be limited to a set number of years. is never used because firms rarely attempt to maintain steady dividend growth. can be used to compute a stock price at any point in time. most applies to stocks with differential growth rates. TB MC Qu. 09-06 The underlying assumption of the dividend... The underlying assumption of the dividend growth model is that a stock is worth: Multiple Choice the same amount to every investor regardless of their desired rate of return. the present value of the future income that the stock is expected to generate. an amount computed as the next annual dividend divided by the market rate of return. the same amount as any other stock that pays the same current dividend and has the same required rate of return. an amount computed as the next annual dividend divided by the required rate of return