A if a bond is selling at a discount to par its

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If a bond is selling at a discount to par, its current yield will be less than its yield to maturitBAll else equal, bonds with longer maturities have more interest rate (price) risk than bonds with shorter maturitiesCIf a bond is selling at its par value, its current yield equals its yield to maturitDIf a bond is selling at a premium, its current yield will be greater than its yield to maturitEAll else equal, bonds with larger coupons have greater interest rate (price) risk than bonds with smaller coupons
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QUESTION: 10[QUESTION BANK IDTYPE: MULTIPLE CHOICORRECTAnalysts who follow Howe Industries recently noted that, relative to the previous year, the company’s operating net cash flow increased, yet cash as reported on the balance sheet decreased. Which of the following factors could explain this situation?:CE
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tQUESTION: 11CORRECTDan is a chemist for ABC, a major drug manufacturer. Dan cannot earn excess profits on ABC stock based on the knowledge he has related to his experiments if the financial markets are
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QUESTION: 12[QUESTION BANK ID: 269522]
TYPE: MULTIPLE CHOICEINCORRECTStock X has a beta of 0.6, while Stock Y has a beta of 1.4. Which of the following statements is correct?
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YQUESTION: 13[QUESTION BANK ID: 269498TYPE: MULTIPLE CHOICORRECT]CE
HD Corp. and LD Corp. have identical assets, sales, interest rates paid on their debt, tax rates, and EBIT. However, HD uses more debt than LD. Which of the following statements is correct?AWithout more information, we cannot tell if HD or LD would have a higher or lower net incomeBHD would have the lower equity multiplier for use in the Du Pont equationCHD would have to pay more in income taxesDHD would have the lower net income as shown on the income statemenE
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