Which of these is not a factor in an investor determining a bond's yield to maturity?

Question 11 options:

a)

Real rate of return

b)

Inflation premium

c)

Risk premium

d)

All of the above ae part of investors determining a bond's required return

A bond's price is based on

Question 12 options:

a)

The market's perception of the issue's risk

b)

The present value of the bond's interest payments

c)

The present value of the bond's principle payment

d)

All of the above

In our formula for valuing a stock with constant growth in dividends (P₀= D₁/ (K_e- g)), g is the

Question 13 options:

a)

Price of the stock today

b)

Dividend at the end of the first year

c)

Required rate of return

d)

Constant growth rate in dividends

The riskiest debt is

Question 14 options:

a)

Secured debt

b)

Debenture

c)

Subordinated debenture

d)

All are equally risky

Bonds are most likely to be refunded by the corporation when

Question 15 options:

a)

Interest rates have fallen

b)

Interest rates have increased

c)

Is generally done when a bond does not have a call provision

d)

None of the above impact the refunding decision