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The market rate is the rate investors demand

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Reference no: EM131129801

State whether each of the following statements is true or false.

1. Mortgage bonds and sinking fund bonds are both examples of debenture bonds.

2. Convertible bonds are also known as callable bonds.

3. The market rate is the rate investors demand for loaning funds.

4. Semiannual interest on bonds is equal to the face value times the stated rate times
6/12.

5. The present value of a bond is the value at which it should sell in the market.

Reference no: EM131129801

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