Which one of these statements is correct? O The ratings assigned to bonds reflect the probability of their face value increasing to above their market value. Municipal securities have less default risk compared to treasury securities. A bond's credit rating can never be changed. Treasury securities have greater default risk relative to corporate bonds. The interest paid on any municipal bond is tax-exempt at the federal level. QUESTION 7 10 points Which one of these applies to the dividend growth model of stock valuation? The model cannot be applied if the growth rate is zero. The dividend amount must be constant over time. The model can be applied to any company that does not pay dividends. The growth rate must be less than the required rate of return. The growth rate must be the same as the discount rate. QUESTION 9 Consider a bond with a coupon rate of 10 percent that pays semiannual interest and matures in five years. The required rate of return on bonds of this risk is currently 12 percent. What is the current value of this $1,000 face value bond? $843.07 $929.17 $893.30 $926.40 $830.58 QUESTION 10 Last year, a bond yielded a nominal return of 10 percent while inflation averaged 3 percent. What was the real rate of return? 10% O 2% O 13% 7% 04%