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Question 15. 15. (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. 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