chance1_2003 - Name: ID number: Examples of True / False...

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Name: ID number: 2 Examples of True / False Questions Based on the 2003 exam. Important to note: The exam of 2003 is based on the literature of 2003. This year some minor literature changes took place. Questions referring to chapters not covered this year can be skipped. Correct answer gives 2 point, wrong answer 0 points. Please circle your answer! 1. In a primary market new issues of securities are offered to the public. TRUE / FALSE 2. Preferred stocks offer more voting power regarding the firm’s management. TRUE / FALSE 3. A zero coupon bond sells at a discount. TRUE / FALSE 4. Bearer bonds are traded with a record of the holders’ name. TRUE / FALSE 5. A holder of a reverse floater bond looses money if the general level of interest rates rises. TRUE / FALSE 6. Yield to maturity is the discount rate that makes the price of a bond equal to its issue price. TRUE / FALSE 7. A sinking fund allows the issuer to spread the payment of par value at the end of a bonds lifetime. TRUE / FALSE
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Name: ID number: 3 8. The yield curve is a graph of yield to maturity as a function of term to maturity. TRUE / FALSE
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This note was uploaded on 11/06/2011 for the course ECONOMICS ebc2034 taught by Professor Vaartjes during the Spring '11 term at Maastricht.

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chance1_2003 - Name: ID number: Examples of True / False...

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