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Question 6 1 pts If the credit rating of CBA Bank decreases markedly, what is...

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Accounting

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Question 6 1 pts If the credit rating of CBA Bank decreases markedly, what is the more likely effect on its financing costs and borrowing ability? CBA Bank may find it easier to borrow money CBA Bank may have to provide additional collateral to borrow money Its default risk may decrease Its interest rates charged on debt may decrease Question 7 2 pts You are interested in buying one corporate bond and your broker has offered two corporate bonds for you to consider: 1. Bond A: paying quarterly coupons, with a maturity date of 1 January 2025, an annual coupon rate of 12% and a bond flat price of $90.0 2. Bond B: paying quarterly coupons, with a maturity date of 1 January 2035, an annual coupon rate of 15% and a bond flat price of $100.0 If the settlement date of both bonds is 1 January 2022, which of these two bonds represents the best investment opportunity? O Both Bond A and Bond B as they are identical O Bond B because its redemption value is higher than Bond A O Bond A O Bond B Question 8 1 pts Which of the following set of conditions will result in a bond with the lowest price volatility? A low coupon and a short maturity A high coupon and a long maturity A low coupon and a long maturity A high coupon and a short maturity

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