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True/false? 1. Assuming that everything else is equal, a 3-month bond issued by the government of Japan most likely pays a lower (?) interest rate

True/false?

1. Assuming that everything else is equal, a 3-month bond issued by the government of Japan most likely pays a lower (?) interest rate than a 3-month bond issued by a government that is engaged in a civil war.

2. Assuming that everything else is equal, a corporate bond issued by an electronics manufacturer most likely pays a higher (?) interest rate than a municipal bond issued by a state.

3. Assuming that everything else is equal, a U.S. government bond that matures 30 years from now most likely pays a higher (?) interest rate than a U.S. government bond that matures 10 years from now.

4. The Dow Jones Industrial Average is an example of a stock exchange where one can purchase Starbucks stock.

5. An increase in the perceived profit-ability of Uber will likely cause the value of its shares (=stock prices) to rise

6. The price of its shares will rise if Apple issues additional shares of stock (*Issuing additional shares of stock dilutes the power of votes/claim-for-dividend from the incumbent owners).

7. Expectations of a recession that reduces economywide corporate profits will likely cause the value of corporates shares to decline.

8. Consider a company JuiceStop which issues stocks to the public for the first time in 2034. JuiceStop provides two shares. During 2034, JuiceStop sells one of the two shares to Emily for $20,000. Later in the same year, Emily sells the share to Janet for $28,000. The second share, at a market value of $27,000, is sold to Jerome. JuiceStop uses all the funds that are financed via selling stocks to Emily and Jerome to purchase cutting-edge juicer machines.

a. JuiceStop earns revenue when Janet purchases the share from Emily: True? False?

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