When a bond's yield to maturity is less than the bond's coupon rate, the bond: O A is selling at a premium. B. is priced at par. OC had to be recently issued O D-is selling at a discount. O E has reached its maturity date. QUESTION 7 A 5.5 percent S1,000 bond matures in 7 years, pays interest semiannually, and has a yield to maturity of 6.23 percent. What is the current market price of the bond? OA 5947.21 OB 5962.40 Oc s945.08 OD sos9.09 OE S959.60 QUESTION 8 Which of the following is an indicator that an investment is acceptable? OA Positive internal rate of return O B. Profitability index of zero OC Payback period that exceeds the required period O D. Negative net present value O E. Internal rate of return that exceeds the required return QUESTION 9 The General Store has a cost of equity of 15.8% a pre-tax cost of debt of 7.7%, and a tax rate of 32%. What us the firm's weighted average cost of capital (WACgif the debt-to-equlty ratio is 0.40 OA 10.18 OR11.72% OC13.7 o. OE 14 QUESTION 10 The goal of financial management is to increase the: The goal of financial management is to increase the: OA future value of the firm's equity OB pook value of equity OC dividends paid per share ODumber of shares outstanding OE current market value per share