Question

Choose the correct answers just , WhithOut explain .. just the choose.. please help me to answer all questions:

1- The mount that will be repaid at the end of the loan is called the bond's (…………). *

A- bond.

B- bond feature.

C- Face value or par value.

2- The number of years until the face value is paid is called (………..) to maturity. *

A- Bond's feature

B- Bond's time.

C- Bond's value

3- This interest rate required in the market on a bond is called the bond's (…….). *

A - Bond's.

B - Investment.

C- Yield to maturity YTM.

4- (……..) is the risk that arises for bond owners from fluctuating interest rate. *

A - Low rate

B - High rate.

C- Interest rate risk

5- (...........) A bond's annual coupon divided by its price. *

A- Simple yield

B - Current yield.

C- Low rating.

6- The corporation borrowing the money is called :(..........). *

A- Bonds.

B- The creditor or lender.

C- Lease .

7- (...…..) is the written agreement between corporation and its creditors. *

A - The program.

B - The titles.

C- The Indenture.

8- The two major forms of long-term debt are: (..........). *

A- Information and data.

B- Public issue and privately placed.

C- Current yield

9- (...….) is an account managed by the bond trustee for the propose of repaying the bonds. *

A - Short term debt.

B - A sinking fund.

C- Long debt

10- (……………)are the bonds that pays no coupons at all must be offered at a price that is much lower than its stated value . *

A- Value bonds

C- Fund

C- Zero coupon bonds_value ponds

11- (........) The portion of a nominal interest rate or bond yield that represents compensation for unfavorable tax status.. *

A - Current Taxes

B - Taxability premium.

C- Bonds

12- (….....) A plot of the yields on treasury notes and bonds relative to maturity. *

A- Zero coupons bonds

B- Treasury yield curve.

C- taxes.

13- In examining interest rates its often necessary to distinguish between(………). *

A- Real rates and nominal rates

B- Information and data.

C- Short term debt and long term debt.

14- (………)The difference between the bid price and the asked price . *

A- Bid-a skspread

B- Lease finance .

C- Bonds.

15- In (………)Transparency in the corporate bond market began to improve dramatically . *

A- 2019.

B- 2009.

C- 2002.

16- A bond's yield to maturity should not be confused with it's future yield. *

A- (T).

B- (F)..

17- Collateral is a general term that frequently means securities. *

A- (T).

B- (F)..

18- Debt is an ownership interest in the firm . *

A- (T).

B- (F)..

19- Bearer form is the form od bond is issued without record of the owners name, payment is made to whomever holds the bond. *

A- (T).

B- (F)..

20- The difference between the call price and the stated value is the call protect. *

A- (T).

B- (F)..

Answer 1

1) C- Face value or par value.

2) B- Bond's time.

3) C- Yield to maturity YTM.

4) C- Interest rate risk

5) B - Current yield.

6) A- Bonds.

7) C- The Indenture.

8) B- Public issue and privately placed.

9) B - A sinking fund.

10) C- Zero coupon bonds_value ponds

11) B - Taxability premium.

12) B- Treasury yield curve.

13) A- Real rates and nominal rates

14) A- Bid-ask spread

15) B- 2009.

16) A- (T).

17) A- (T)

18) B- (F)

19) A- (T)

20) A- (T)