FINA3317 PracticeMidTermExamSpring2014solutions

C the face value payment amount and rating are fixed

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Unformatted text preview: ditions. C. The face value, payment amount, and rating are fixed for the life of the bond, while the coupon rate and current yield, and coupon rate change with market conditions. D. The maturity date and face value are fixed for the life of the bond, while the price and coupon rate change with market conditions. E. The price, coupon rate, and rating are fixed for the life of the bond, while the yield and payment amount change with market conditions. F. None of the above. ____7. Which of the following are true about interest and dividends? [Ch. 12 and 13] A. Interest payments tend to be of a fixed amount, while dividends often change over time. B. Missed dividend payments are considered a default, while managers may decide to miss interest payments as long as all missed payments are made before common stock is paid. C. Interest payments tend to increase at a fixed rate over time, while three different methods can be used to estimate future dividends. D. Interest payments can be calculated from the coupon rate, while dividends can be used in computing the time to ma...
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This test prep was uploaded on 04/07/2014 for the course FINA 3317 taught by Professor Pieterdejong during the Spring '08 term at UT Arlington.

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