Flotation costs are typically greater in the secondary market than in the primary market

Ferdinand Waldo Demara was known as the great imposter. He had an astounding ability to convince people that he was who he truly was not. He worked as a naval officer, physician, college teacher, prison warden, and other jobs without any of the prerequisite qualifications. By not diligently checking references, the organizations fooled by Demara (including the Canadian Navy) apparently chose to ________ the risk of fraud.

A) reduce B) share C) avoid D) accept

What is the return on a 5 percent coupon bond that initially sells for $1,000 and sells for $900 one year later?

A) 5 percent B) 10 percent C) -5 percent D) -10 percent E) None of the above