1. Which of the following bonds has a higher interest rate sensitivity?
A) Bond A is an 8% coupon, 20-year maturity bond selling at par value.
B) Bond B is an 8% coupon, 20-year maturity bond selling below par value.
C) Bond C is an 8% coupon, 10-year maturity bond selling at par value.
2. Debt Management Ratios Trina's Trikes, Inc. reported a debt-to-equity ratio of 1.82 times at the end of 2008. If the firm's total debt at year-end was $9.10 million, how much equity does Trina's Trikes have?