1) Prices of risky corporate bonds usually fell from November 2008 to November 2013.

i) True
ii)False

2) The annual yield investors demanded in November of 2008 from Baa rated bonds was 9.21% whereas in June of 2006 the needed annual yield on these securities was 5.25%.

i) True
ii) False

3) After severe 2008 stock market crash, the rising number of publicly traded firms proclaimed stock buyback programs. Describe what benefits or justification, if there is any, firms see in stock repurchases when their prices are losing and how investors would respond to these repurchase programs. Your answers should not be more than 10 sentences.

4) Break-even analysis (LO2) Therapeutic systems sells it's product for $8 per unit. It has costs which is given. Rent $120,000, factory labor $1.50 per unit, executives under contract $112,000, raw material $.70 per unit . Separate expenses between fixed and variable costs per unit. By Using this information and sales price per unit of $8 find out break-even point.