You short-sell 200 shares of Brooks Trading Co., now selling for $50 per share. What is your maximum possible loss? half the value of the initial position unlimited $20,000 $10,000 Question 7 of 36 Question 7 10 points Save Answer Consider two bonds, A and B. Both bonds presently are selling at their par value of $1000. Each pays interest of $60 annually. Bond A will mature in 7 years, while bond B will mature in 8 years. If the yield to maturity on the two bonds change from 6% to 8%, Both bonds will decrease in value but bond A will decrease more than bond B Both bonds will increase in value but bond A will increase more than bond B Both bonds will decrease in value but bond B will decrease more than bond A Both bonds will increase in value but bond B will increase that bond A 10 points Save Answe An investor purchases one municipal bond and one corporate bond that pay rates of return of 5% and 6.5%. respectively. If the investor is in the 30% tax bracket, his after tax rates of return on the municipal and corporate bonds would be, respectively, 5% and 4.55% 5.75% and 4.55% 4.25 and 6.5% 5% and 6.5% Mmg w d Ulher question will save this response. Question 9 Question 90 You purchased IBM July 120 call contract for a premium $5. You hold the option until expiration date, when IBM sells for $122 per share. You will realize 10 points Sav $200 loss on the investment. $200 profit $300 profit $300 loss Question 10 Using the Dividend Discount model DDM) if the Fed decides to decrease interest rates this will definitely decrease stock prices because inflation is low