1. A four-year Verizon bond makes coupon payments of $30 every six months and sells for $950. What is the bond’s annual yield to maturity?
A. 6.00%
B. 6.32%
C. 6.98%
D. 7.47%
E. 8.54%
2. The use of debt is called:
A. business risk.
B. operating leverage.
C. production leverage.
D. total asset turnover risk.
E. financial leverage.