They have a $1000 Par Value an 8% Coupon and have 3 years remaining until maturity. Coupon payments are made semi-annually. The bonds are rated BB and other BB bonds of similar maturities are currently priced to yield 4%. What should the bonds of ABC Corp currently trade closest to in price?

A. $972.56 B. $995.25 C.$1007.45 D. $1054.17 E.$1112.03 F.$1237.76

What is the current yield of the bonds given the price level you believe the bonds should trade at? A. 6.45% B7.19% C. 8.00% D. 9.23% E.9.79%

Should the capital gains yield of the bonds be positive or negative if you purchase the bonds at todays trading price and held the bonds to maturity? A. Positive B.Negative

Corp. has also issued preferred stock with a par value of $25.00. Should ABC Corp. declare bankruptcy, which issue is more likely to have a par value recovery in a reorganization or liquidation?

A. The $1000 par value bonds

B. The $25.00 par value preferred

C.Impossible to say a bankruptcy judge determines which will be paid first.