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Question 14. Question : (TCO 5) Assume that you purchased a $1,000
Exxon bond that pays 8.5% interest. What is the amount of interest you
would receive every 6 months?
$42.50
$8.50
$85
$4.25
$1,000
Question 15. Question : (TCO 5) What is the approximate market value
for a $1,000 corporate bond that pays 7% interest when comparable
bonds are paying 8% interest?
$800
$875
$70
$1,142
$1,000
Question 16. Question : (TCO 5) The _____ describes legal conditions
for a corporate bond.
trustee contract
bondholder's covenant
bond indenture
corporate charter
bond debenture
Question 17. Question : (TCO 5) A _____ bond is backed only by the
reputation of the issuing corporation.
preemptive