Which of the following statement is most likely to be true? Select one: O a. The prospect of future in ation very strongly in uences the shape of the term structure O b. If yield to maturity is higher than coupon rate, it is called a "discount bond" O c. If the borrower is certain to make all the payments, there is still risk in owning the bond O d. All of the above Which of the following statement is most likely to be true after a bond is issued? Select one: O a. Coupon rate remains unchanged as time passes O b. Yield to maturity uctuates as time passes O c. Face value remains unchanged as time passes O d. All of the above Which of the following statement is mostly likely to be true regarding a common stock? Select one: O a. The life of the investment is limited O b. There is no way to easily observe the rate of return that the market requires O c. The promised cash flows are known in advance O d. None of the above You are attempting to value the shares of Air Canada. Air Canada is not currently paying dividends. You predict that in ve years, the company will pay a dividend for the rst time. The dividend will be $0.50 per share. You expect this dividend to grow at 10 percent indefinitely. You would most likely: Select one: O a. Use the constant growth dividend model O b. Use the supernormal growth dividend model O c. Use the zero growth dividend model O d. Use the constant dividend model