Ch5 - Stu Resp Score: 0 / 1 Question 7 (1 point) Which of...

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Question 1 (1 point) D. J. Masson Inc. recently issued noncallable bonds that mature in 10 years. They have a par value of $1,000 and an annual coupon of 5.5%. If the current market interest rate is 7.0%, at what price should the bonds sell? Student response: Student Response Answer Choices a. $829.21 b. $850.47 c. $872.28 d. $894.65 e. $917.01 Score: 1 / 1 Question 2 (1 point) A 10-year bond with a 9% annual coupon has a yield to maturity of 8%. Which of the following statements is CORRECT? Student response: Stu Resp Score: 1 / 1
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Question 3 (1 point) A 15-year bond with a face value of $1,000 currently sells for $850. Which of the following statements is CORRECT? Student response: Stu Resp Score: 1 / 1 Question 4 (1 point) Which of the following statements is CORRECT? Student response: Stu Resp Score: 0 / 1
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Question 5 (1 point) Which of the following statements is CORRECT? Student response: Stu Resp Score: 0 / 1 Question 6 (1 point) Which of the following statements is CORRECT? Student response:
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Unformatted text preview: Stu Resp Score: 0 / 1 Question 7 (1 point) Which of the following statements is CORRECT? Student response: Stu Resp Score: 0 / 1 Question 8 (1 point) You are considering two bonds. Bond A has a 9% annual coupon while Bond B has a 6% annual coupon. Both bonds have a 7% yield to maturity, and the YTM is expected to remain constant. Which of the following statements is CORRECT? Student response: Stu Resp Score: 1 / 1 Question 9 (1 point) Which of the following statements is CORRECT? Student response: Stu Resp Score: 1 / 1 Question 10 (1 point) If 10-year T-bonds have a yield of 6.2%, 10-year corporate bonds yield 8.5%, the maturity risk premium on all 10-year bonds is 1.3%, and corporate bonds have a 0. 4% liquidity premium versus a zero liquidity premium for T-bonds, what is the default risk premium on the corporate bond? Student response: Stu Resp Score: 1 / 1 Total score: 6 / 10 = 60.0%...
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Ch5 - Stu Resp Score: 0 / 1 Question 7 (1 point) Which of...

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