• Question 4 What is the present value of $6,811 to be received in one year if the discount rate is 6.5 percent ?A. $6,395.31B. $7,253.72C. $6,023.58D. $6,643.29E. $6,671.13
• Question 5 Under the____________ method, the underwriter buys the securities for less than the offering price and accepts the risk of not selling the issue, while under the _________ method, the underwriter does not purchase the shares but merely acts as an agent.
Question 6 All else held constant, interest rate risk will increase when the time to maturity: