Final Finance

Final Finance - 1. A bond's coupon rate is equal to the...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
1. A bond's coupon rate is equal to the annual interest divided by which one of the following? A. call price B. current price C. face value D. clean price E. dirty price 2. An indenture is: A. another name for a bond's coupon. B. the written record of all the holders of a bond issue. C. a bond that is past its maturity date but has yet to be repaid. D. a bond that is secured by the inventory held by the bond's issuer. E. the legal agreement between the bond issuer and the bondholders. 3. Which of the following defines a note? I. secured II. unsecured III. maturity less than 10 years IV. maturity in excess of 10 years A. III only B. I and III only C. I and IV only D. II and III only E. II and IV only 4. A deferred call provision is which one of the following? A. requirement that a bond issuer pay the current market price, plus accrued interest, should the firm decide to call a bond B. ability of a bond issuer to delay repaying a bond until after the maturity date should the issuer so opt C. prohibition placed on an issuer which prevents that issuer from ever redeeming bonds prior to maturity D. prohibition which prevents bond issuers from redeeming callable bonds prior to a specified date E. requirement that a bond issuer pay a call premium which is equal to or greater than one year's coupon should that issuer decide to call a bond
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
5. The pure time value of money is known as the: A. liquidity effect. B. Fisher effect. C. term structure of interest rates. D. inflation factor. E. interest rate factor. 6. Which one of the following risk premiums compensates for the possibility of nonpayment by the bond issuer? A. default risk B. taxability C. liquidity D. inflation E. interest rate risk 7. Which one of the following is computed by dividing next year's annual dividend by the current stock price? A. yield to maturity B. total yield C. dividend yield D. capital gains yield E. growth rate 8. A company has two open seats, Seat A and Seat B, on its board of directors. There are 6 candidates vying for these 2 positions. There will be a single election to determine the winner of both open seats. As the owner of 100 shares of stock, you will receive one vote per share for each open seat. You decide to cast all 200 of your votes for a single candidate. What is this type of voting called? A. democratic B. cumulative C. straight D. deferred E. proxy
Background image of page 2
9. Which one of the following statements is correct concerning the two-stage dividend growth model? A. G 1 cannot be negative. B. P t = D t /R. C. G 1 must be greater than G 2 . D. G 1 can be greater than R. E. R must be less than G 1 but greater than G 2 . 10. Winston Co. has a dividend-paying stock with a total return for the year of -6.5 percent. Which one of the following must be true? A. The dividend must be constant.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/04/2011 for the course FIN 301 taught by Professor Rahman during the Spring '10 term at Post.

Page1 / 14

Final Finance - 1. A bond's coupon rate is equal to the...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online