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Question 14. 14. (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. 15. (TCO 5) Corporate bonds typically pay interest every
month.
6 months.
3 months.
9 months.
year.
Question 16. 16. (TCO 5) The _____ is the financially independent firm
or individual that acts as the bondholders' representative.
trustee
president of the corporation
debenture holder
indenture holder
chairman of the board
Question 17. 17. (TCO 5) A _____ bond is unsecured and gives
bondholders a claim secondary to that of other designated bondholders
with respect to both income and assets.
subordinated debenture
mortgage
debenture
preemptive
Treasury