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What is the ( effective ) interest rate in each of the following cases. Bought a bond with a face value of $ 1 0
What is the effective interest rate in each of the
following cases.
Bought a bond with a face value of $ held it
for six months and received a coupon payment of
$ :
Deposited $ at a bank for one year and
received $ as interest:
Borrowed on July and repaid
on July :
All answers are to be rounded to three decimal
places.Choose all that are not appropriate statements regarding financing options for firms.
In a bankruptcy, if there is any money left after paying off all creditors, the money is distributed to shareholders.
Money raised through share issues is costfree.
Debt is a form of liability that has a variable rate of return.
Cost of funds raised through a bond issue is lower than the cost of funds raised through a share issue.
Companies must always pay dividends to reward shareholders.
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