13. A _______ PE may indicate that the market feels the firm's earnings are very _______ risk and is therefore willing t...
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13. A _______ PE may indicate that the market feels the firm's earnings are very _______ risk and is therefore willing to pay a ________ for them.
A) high; low; premium
B) high; high; discount
C) low; low; discount
D) high; high; premium
E) #1; #2; more of #1!
14. If a $5,000 coupon bond has a coupon rate of 13 percent, then the coupon payment every year is
A) $650.00
B) $1,300.00
C) $130.00
D) $13.00
E) $0.07
15. An $8,000 coupon bond with a $400 annual coupon payment has a coupon rate of
A) 5 percent.
B) 8 percent.
C) 10 percent.
D) 40 percent.
E) 50 cents
16. Suppose you are holding a 5 percent coupon bond maturing in one year with a yield to maturity of 15 percent. If the interest rate on one-year bonds rises from 15 percent to 20 percent over the course of the year, what is the yearly return on the bond you are holding?
A) 5 percent
B) 10 percent
C) 15 percent
D) 20 percent
E) 1965 Percent