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Which of the following is true of bonds issued by corporations but not by the U.S. Treasury? a) They may default b) They pay coupons

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Which of the following is true of bonds issued by corporations but not by the U.S. Treasury? a) They may default b) They pay coupons c) They may be priced at a discount d) Their prices may change The U.S. Treasury jest issued a 20-year bond et par. Is it possible for Jaqueline Wips, Inc. to issue a 20-year bonds par? a) Yes. If Its coupon rate is high enough above that of the Treasury's b) Yes, if its coupon rate is low enough below that of the Treasury's c) Of course, because its yield-to-maturity is lower than that of the Treasury d) Of course not, dummy! 51 millionis investedat 6% for 10 years. How much additional proceeds is earned if the rate is compounded semi-annually compared to simple interest? a) S600,000 b) $190 848 c) $1,806, 111 d) $806, 111 e) $206, 111 A company intends to raise funds by issuing a security with the following promised cash flows: $150,000 in 3 years $500,000 in 5 years How much money willitraise if the discount rate for both cash flows is 5% (annual compounding)? a) $509 292 b) $521,339 c) $619.048 d) $650.000

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