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Which of the following bond prices is most sensitive to market rate changes? The par value is $1000 for all. 7 Select one: a. 5-year,

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Which of the following bond prices is most sensitive to market rate changes? The par value is $1000 for all. 7 Select one: a. 5-year, 5-percent coupon rate, yield 5.5 percent b. 10-year, 4.5-percent coupon rate, yield 5.5 percent c. 7.5-year, 4.5 percent coupon rate, yield 5.5 percent d. 3-year, 8-percent coupon rate, yield 5.6 percent What proportion of earnings is being plowed back into the firm if the sustainable growth rate is 8 percent and the firm's ROE is 20 percent? Select one: a. 20 percent b. 8 percent c. 12 percent O O d. 40 percent Which of the following statements is correct? Select one: a. When the coupon rate is higher than the market rate (required rate of return), the bond is priced at a discount O b. When the market rate (required rate of return) is higher than the coupon rate, the bond is priced at a premium. c. Current yield is the ratio of annual coupon payment divided by the par value. d. If a bond is at a discount, the coupon rate is less than the market rate (required rate of return). Assuming that an asset has been fully depreciated according to its straight line CCA class, which of the following statements is correct concerning the value of the asset: Select one: a. its market value is zero. b. its book value is the current market value. c. it has neither book value nor market value. d. its undepreciated capital cost (UCC) value is zero

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