True about bonds

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1. Which of the following is true about bonds?

A. They are obligations from the investor to the corporation.

B. Their interest rate always varies with the Consumer Price Index.

C. They have a fixed maturity, and they pay an amount equal to the maturity value times the coupon rate each year.

D. At maturity of the bond, the investor receives the market price of the bond.

2. Weisbro and Sons common stock sells for $51 a share and pays an annual dividend that increases by 4.0 percent annually. The market rate of return on this stock is 9.70 percent. What is the amount of the last dividend paid by Weisbro and Sons?

A. $3.03

B. $2.80

C. $4.76

D. $1.96

E. $2.76

Reference no: EM131909753

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