A four-year corporate bond with a 7% coupon has a Z-spread of 200 bps. Assume a flat yield curve with an interest rate for all maturities of 5% and annual compounding. The bond will most likely sell:

Which of the following is an example of a conflict of interest that an effective corporate governance system would mitigate or eliminate?

A) A majority of the board is independent of management B) Directors identify with the managers' interests rather than those of the shareholders. C) Directors have board experience with companies regarded as having sound governance practices.

If you put $200 in a savings account at the beginning of each year for 10 years and then allow the account to compound for an additional 10 years, how much will be in the account at the end of the 20th year?

Assume that the account earns 10%, and round to the nearest $10. A) $8,300 B) $9,100 C) $8,900 D) $9,700