I need help with questions 43 and below pls 41) What is the coupon rate of Bank of America's bond?a) $1,000,000b) 12%c) 30 yearsd) $120,000e) Unable to calculate42) Which is true regarding debt and equity securities?a) Equity represents something which must be repaidb) Debt is considered ownership of the companyc) Dividend payments are a cost of doing businessd)Unpaid debt is a liability of the businesse) All of the above43) Which is a term that would be included in a bond indenture?a) Interest rateb) Dividendc) Share priced) Trusteee) Written agreement44) Which is the definition of a protective covenant?a) Bonds are repaid at maturity, where investors receive face valueb) Sinking fundc) An agreement giving the corporation the option to repurchase a bond at a specified priceprior to maturityd)Part of a bond indenture which limits certain actions of a company that it may wish toundertakee)The preference a bond issue has over other lenders45) If a bond is considered "Below Investment Grade", what could its rating be?a) AAAb) CCC+c) Garbaged) BB+e) Venezuela46) Pete "Polar Bear" Alonso wants to purchase a bond with the highest tax-affect yield. Hehas a choice between a New York City municipal bond yielding 4.09% or a AAA-rated CocaCola bond yielding 4.38%. His tax rate is 30%. Assuming the Polar Bear is a rational (andthat is a stretch), which bond would be prefer?a) Neither, as he doesn't understand how to calculate tax-affected yieldsb) New York City bondc) Both, tax-affected yield is exactly the samed) Coca Colae) His tax bracket is wrong

Since you have asked multiple questions, we will solve the first question (Q#43) for you. If you…

Answered: 43) Which is a term that would be…

43) Which is a term that would be included in a bond indenture? a) Interest rate b) Dividend c) Share price d) Trustee e) Written agreement

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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