Callable bonds are likely to be called when interest rates . less; decline more; decline more; increase none of the above Common purchasers of corporate bonds include many financial and some nonfinancial institutions, as well as individuals. False True If a bond sells above its par value, it is called a bond. discount premium callable convertible A zero-coupon bond sells for $1,000. Assume that the required rate of return changes from 6 percent to 5 percent. As a result, the price of the zero bond increases to $1,070. What is the bond price elasticity for this bond? Strong economic growth tends to place downward pressure on interest rates. As interest rates decrease, short-term bond prices increase by a greater degree than long-term bond prices. A company anticipates earnings per share of $0.20. The mean ratio of share price to expected earnings of competitors in the oil and gas industry is 15. What is the expected stock price according to the price-earnings method