Which of the following statements regarding default risk is CORRECT? O a. Default risk is unrelated to the financial strength of the issuer. O b. Investors have little interest in bond ratings. O c. A debenture bond is secured by a mortgage. O d. All mortgage bonds are subject to an indenture agreement. O e. Junk bonds are low risk, low yield bonds. The values of financial assets such as stocks, bonds, and capital investments are found as the present value of their expected future cash flows, creating the need to O a. secure a fixed interest rate. O b. calculate the future value (FV) of the asset frequently O c. carefully monitor the company's other assets. O d. ensure stop-losses are set on vulnerable assets. O e. calculate the present values much more often than the future values. A 10-year bond has a par value of $5,000 with a 6% nominal rate, compounded semiannually. It has a coupon rate of 8% and the coupon interest payments are semiannual. What is the current value of the bond? O a. $3,853.01 O b. $5,426.51 O c. $5,743.87 O d. $6,146.99 O e. $7,132.55 Solving for the N value is helpful O a. to determine how long it will take to accumulate a desired sum of money. O b. to know how much interest will be earned in a certain number of years. O c. when determining if an interest rate is simple or compounded. O d. when trying to find the future value of a cash flow. O e. if you want to use algebra to find the time value of money. Which of the following is TRUE about stock beta? O a. An average risk stock will have a beta of o. O b. A high beta score has a positive effect on a company's stock price. O c. Zero-risk securities have a beta of 1. O d. A beta of 1 or less signifies a high-risk stock, O e. A company's beta can change as a result of external factors such as patent expirations