1. A bond with an annual coupon of $100 originally sold at par for $1,000. The current yield to maturity on this bond is 9%. This bond would sell at
A. A discount to par.
B. At par.
C. At a premium to par.
D. Face value.
E. Not enough information.
2. Many firms use more than one technique to evaluate capital budgeting projects because multiple measures can provide decision makers with somewhat different pieces of relevant information.
True or false
3. Which one of the following terms is defined as an underwriting for which the underwriters assume full responsibility for any unsold shares?
1) Initial public offering
2) Best efforts underwriting
3) Firm commitment underwriting
4) Rights offer
5) Private placement