Which of the following types of loss exposures may be appropriately handled through the purchase of insurance?I. High-frequency, low-severity loss exposures II. Low-frequency, high-severity loss exposures

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:

A. close to par. B. at a premium to par. C. at a discount to par.

The primary user group that confirms tax liabilities are

A. Suppliers B. Stockholders and potential investors C. Management D. Lenders E. Government agencies