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Question 13 3 pts A cash flow of $1,000 promised by the U.S. Treasury to be paid in two years is priced at $985 today. What must be the cash flow promised by company ABC to be paid in two years in order to have the same $985 price today? o less than $985 O between $985 & $1,000 O $1,000 more than $1,000 Question 17 3 pts Company Y is in a more volatile industry than Company X. Yet, the bonds of X and Y (with the same maturity) have equal risk premia. What might explain this? O Y has a greater coverage ratio than X O Y has a lower coverage ratio than X O Y has the same coverage ratio as X Question 20 3 pts Consider a single cash flow of 100 in five years. If the futurity is extended to six years, holding its discount (interest) rate constant: its price is unchanged O its price falls O its price rises N O none of the above O none of the above Question 21 3 pts Consider a five-year bond with a 5% annual coupon, and a yield to maturity of 5%. If its maturity is extended to six years, and its yield-to- maturity is unchanged: O its price is unchanged O its price falls O its price rises O none of the above

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