What is the price of a zero coupon bond that has a face value of $100 and 6 years left until maturity if the YYM is 3.41%, compounded semi-annually? a. $81.64 b. $75.15 c. $92.61 d. $86.14 Consider four bonds (1, 2, 3, and 4). They have been rated by the rating agencies as follows: Bond 1: Ba; Bond 2: AA; Bond 3: BBB; Bond 4: Caa. Which of the following statements are correct? I. Bond 1 is safer than Bond 3 II. Bond 2 is riskier than Bond 3 III. Bond 3 is safer than Bond 4 IV. Bond 4 is riskier than Bond 1 a. I and III only b. II and III only c. III and IV only d. I, III, and IV only Which of the following statements is TRUE? a. Equity represents a contractual obligation between the firm and investors. b. Debt is typically harder to value than equity because of the bigger numbers. A firm's choice of debt versus equity is called the capital structure. d. Equity can be both public and private, but debt can only be private. c