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1. Define and give examples of each.

a. Eurobond

b. Zero coupon bond

c. Junk bond

d. Convertible bonds

e. Floating rate bonds

2. What is the difference between a bond's coupon interest rate, current yield, and required rate of return?

3. What do bond ratings show you?

4. What is a preferred stock? Why preferred stocks are called hybrid securities?

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