If the coupon rate of a bond coincides with the market rate of interest when the bonds are actually sold to investor ,the boonds will be sold at .

I. Fill in the blanks with the appropriate transitions and expressions of cause and effect. Pay careful attention to the punctuation given. （10%）（共10分，每题1分） Causes of Teenage Smoking A 13-year-old boy, standing in the doorway of his school, puffs on a cigarette. He holds it carelessly, like an adult, yet in plain view. He looks around to make sure that the other guys are watching. If you ask how long he has smoked, you will find out that he started when he was eleven. But now, he is an addicted smoker. If you ask him why he smokes, he will probably say that he enjoys it. ① you wonder if that is really the reason. It seems to me that the causes of teenage smoking are more complex. More specifically, they have more to do with the ambiguous role of teenagers in society. Teenage smoking is ② by personal insecurity, a desire to be like adults, and peer pressure. The ③ cause of teenage smoking is the personal insecurity young people often feel. They are at a different age. They are no longer children, ④__ the ways in which they have behaved in the past are inappropriate. On the other hand, they are not yet adults; ⑤ , they do not know the ways of the adult world. This conflict can ⑥ feelings of insecurity. ⑦ , if children want attention from their parents or a toy or sweet, they can cry to draw attention to their desires. For teenagers ⑧ , crying will be labeled childish and they will be told to “act their age.” Often, ⑨ , the teenager does not know how to act his or her age. ⑩ teenagers do not know what to do, they often turn to smoking as a way to hide their nervousness and insecurities.

Sometime during the 1950s, rock music permanently ousted jazz from the music scene. This is evident from the behavior. of youths of that time. In crowded nightclubs they would applaud rock acts enthusiastically. But when a jazz act began, they went outside and got refreshments. They came back in only when the jazz set was finished. Which of the following statements, if true, is a valid objection to the conclusion drawn above?

A．Jazz is the most important musical contribution of the linked States to world culture.

B．Although some young people who attended nightclubs in the 1950"s did try to listen to jazz, they eventually became bored with it.

C．Since the 1960" s, rock music has not only provided youths with recreation but has, as well, become a rallying point for making social statements.

D．Although by 1960 jazz performances were less popular, there has since been a revival of interest in jazz among middle-class professionals.

E．Jazz steadily increased in popularity between the 1930"s and the 1950"s.

The current dollar yield curve on the international bond market is flat at 6.5 percent for AAA-rated borrowers. A French company of AA standing can issue straight and plain vanilla FRN dollar bonds at the following conditions: ■ Bond A: Straight bond. Five-year straight-dollar bond with a semiannual coupon of 6.75 percent. ■ Bond B: Plain-vanilla FRN. Five-year dollar FRN with a semiannual coupon set at LIBOR plus 0.25 percent and a cap of 13 percent. The cap means that the coupon rate is limited at 13 percent, even if the LIBOR passes 12.75 percent. An investment banker proposes to the French company the option of issuing bull and/or bear FRNs at the following conditions: ■ Bond C: Bull FRN. Five-year FRN with a semiannual coupon set at 12.75 percent– LIBOR. ■ Bond D: Bear FRN. Five-year FRN with a semiannual coupon set at 2 × LIBOR - 6.5 percent. The coupons on the bull and bear FRNs cannot be negative. The coupon on the bear FRN is set with a cap of 19 percent. Assume that LIBOR can never be below 3.25 percent or above 12.75 percent. a. By comparing the net coupon per bond for the following combination to that of a straight Eurobond, show that it would be more attractive to the French company to issue the bull and/or bear FRNs than the straight Eurobond. i. Issue 2 bull FRNs + 1 bear FRN. ii. Issue 1 plain-vanilla FRN (bond B) + 1 bull FRN. b. By comparing the net coupon per bond for the combination of 1 straight bond (bond A) + 1 bear FRN, show that it would be more attractive to the French company to issue the bull and/or bear FRNs than the plain-vanilla FRN.

【T11】

A. WATCHING TV

B. HIRE THEM

C. SO PHRASES: A. THAT THE COMPANIES THAT【T7】______ WANT MONEY

B. THAT COULD BE SPENT【T8】______

C. AND UNDERSTANDABLY【T9】______ CHILDREN ARE A SPECIAL TARGET OF ADVERTISERS,【T10】______ YOUNG PEOPLE ARE SHOPPING AND SPENDING MORE THAN EVER BEFOR

E. RESEARCHERS SUGGEST THAT CHILDREN WHO ARE HIGHLY INVOLVED IN CONSUMER CULTURE ARE MORE PRONE TO CHILDHOOD DEPRESSION AND ANXIETY AND HAVE WORSE RELATIONSHIPS WITH THEIR PARENTS. THEY SAID: "YOU CANNOT TOTALLY PROTECT YOUR KIDS FROM ADVERTISING BECAUSE IT IS EVERYWHER

E. SO YOU CAN EXPLAIN TO YOUR KIDS THAT ADVERTISERS HAVE AN AGENDA AND【T11】______ THEY DON"T HAVE OUR BEST INTERESTS IN MIN

D. " THEY ALSO SUGGEST THAT FAMILY SHOULD WATCH VERY LITTLE TELEVISIO

N. YOU CAN FILL THE TIME【T12】______ WITH OTHER ACTIVITIES, SUCH AS READING AND PLAYING GAMES TOGETHER.

Balotelli Beach Hotel Co (Balotelli) operates a number of hotels providing accommodation, leisure facilities and restaurants. You are an audit senior of Mario & Co and are currently conducting the audit of Balotelli for the year ended 31 December 20X4. During the course of the audit a number of events and issues have been brought to your attention: Food poisoning Balotelli's directors received correspondence in November 20X4 from a group of customers who attended a wedding at one of the company's hotels. They have alleged that they suffered severe food poisoning from food eaten at the hotel and are claiming substantial damages. Management has stated that based on discussions with their lawyers, the claim is unlikely to be successful. Required In relation to the claim regarding the alleged food poisoning, which of the following audit procedures would provide the auditor with the MOST reliable audit evidence regarding the likely outcome of the litigation?

A、Request a written representation from management supporting their assertion that the claim will not be successful

B、Send an enquiry letter to the lawyers of Balotelli to obtain their view as to the probability of the claim being successful

C、Review the correspondence from the customers claiming food poisoning to assess whether Balotelli has a present obligation as a result of a past event

D、Review board minutes to understand why the directors believe that the claim will not be successful