Chapter 12 Investing in Bonds
Learning Objective 1: Describe the characteristics of corporate bonds
Corporate bond: a corporations written pledge to repay a specified amount of money, along w/
Face value: the dollar amount the bondholder will
CHAPTER 3 QUIZ
An excise tax is imposed on specific goods and services.
Taxable income refers to the amount deducted from a persons pay.
A tax credit reduces the amount of taxes owed.
Eligible dividends are gross
CHAPTER 5 QUIZ
Credit encourages overspending and ties up future income.
With revolving credit, the borrower pays back a onetime loan in a specified
period of time and with a specified number of payments.
1. In financial institutions, the sources of credit:
A. come in all shapes and sizes.
B. play an important role in our economy.
C. are typically short term
D. A and B are correct
E. A, B and C are correct
2. By evaluating your credit opti
Please note that, even though you will see reference to them in a few of these
questions, time value of money tables will not be provided on quizzes or exams. LB
CHAPTER 1 QUIZ
1. Assume that you purchase a $1,000 corporate bond that pays 10-3/4 percent interest. What is the amount of
interest that you receive each year?
2. Assume that you purchased a $1,000 Mobil
CHAPTER 8 QUIZ
There is insurance available for every type of risk.
Every liability lawsuit involves an act of negligence.
Homeowners insurance covers the cost of living elsewhere while your home is being
CHAPTER 11 QUIZ
Corporations sell common stock to finance their business start-up costs and help pay for their
ongoing business activities.
An income stock pays lower than average dividends.
The record date is t
1. Renting is more advantageous than buying a home for
A. lower short-term living costs.
B. financial benefits.
C. long-term investment purposes.
D. receiving tax benefits.
E. permanence of residence.
2. A common opportunity cost associat
CHAPTER 7 QUIZ
Several financial benefits are associated with renting your place of residence.
A lease is mainly designed to protect the rights of the landlord.
Financial risks are associated with the purchase of a home
CHAPTER 13 QUIZ
The major reasons why investors purchase mutual funds are professional management and
A closed-end mutual fund is a fund whose shares are issued and redeemed by the
1. Which of the following is not a true statement?
A. No one is going to make you save the money you need to start an investment program.
B. To be useful, investment objectives must be specific and measurable.
C. Investment goals must b
CHAPTER 6 QUIZ
Parents or family members are often sources of the least expensive loans.
A float period enables cheaper credit purchases.
The APR is the percentage cost (or relative cost) of credit on a yearly basis.
Chapter 4: The Banking Services of Financial Institutions
A Strategy for Managing Cash
Meeting Daily Money Needs:
Cash, cheque, credit card, or debit card
Common mistakes include:
Overspending as a result of impulse buying and using credi
Chapter 2: Money Management Strategy: Financial Statements and Budgeting
Planning For Successful Money Management
Maintaining financial records and planning your spending are essential to successful personal financial
The time and effort you
Chapter 3- Planning Your Tax Strategy
Taxes and Financial Planning:
Knowing the current tax laws and regulations that affect you
Maintaining complete and appropriate tax records
Employment, purchase and investment decisions with the greatest after-tax c
Chapter 5: Introduction to Consumer Credit
What is Consumer Credit?
Credit is an arrangement to receive cash, goods or services now and pay for them later
Consumer credit refers to the use of credit for personal needs (except a home mortgage)
PERSONAL FINANCE SEPT 15
Chapter 2: Personal financial statements
Lot of similarities with corporate statements
We face opp. Costs with financial decisions
o Spend money today or save it
o Anything saved today means foregone future consumption
Chapter 7: Choosing a Source of Credit: The Costs of Credit Alternatives
Sources of Consumer Credit
Credit costs money
Broad range of sources of credit
Do I need a loan?
Can I afford a loan?
Can I qualify for a loan?
Avoid credit when, do not need or re
Chapter 7: The Finances of Housing
Evaluating Housing Alternatives
Your Lifestyle and Your Choice of Housing:
Your lifestyle, needs, desires, and attitudes are reflected in your choice of place to live
Home should cost 2 times your annual income
What is life insurance?
Provides benefit in the event of death of the insured to beneficiaries
Funeral/final expenses ($5000)
Eliminate any financial burden that our death would impose on others
How does it work?
Stocks Part 2
Monday, November 30, 2 015
Stop loss order: If price is $x or lower, it will trigger a market sell order
Stop entry order: If price is $x or higher, it will trigger a market buy order
Chapter 1- Personal Financial Planning- An Introduction
Six step planning process which will help review, revise and align your goals with changing
Factors that may influence your goals and your changing life situation. Guidelin
OCT 6 2014
Quiz is on chap 4-5-6
Own home 100k, no mortgage =100k equity
Credit score = beacon score
Over 700 is good for mortgage
Getting close to or over your credit limit really hurts your score.
Hard hit: actual lender looks at your credit p
Wednesday, October 21, 2 015
a. Investment mortgage ( loan on real estate property, not without risk, but
b. Investment loan ( stocks/bonds)
d. Student loan
Wednesday, November 11, 2 015
Apple users tend to be less price sensitive.
Mortgage is an amortized/installment loan. Look at 5 C's of credit.
- Secured, collateral is the house itself
- Lower risk
Monday, December 7, 2 015
- Protect asses over time
- Tenant insurance: liable for people getting hurt in your home without it,
contents of unit, car insurance does not cover contents
- Life insurance for c
Monday, November 30, 2 015
Most accessible way into diversified investment
Good potential entry point for most early & new investors
Paid a lot, f
Monday, December 7, 2 015
- Have enough resources so you dont have to work for income anymore
- Trade off between consumption today and consumption in the future
Magic of compound interest: st
Stocks Part 1
Monday, November 23, 2 015
Long-term debt is an alternative to investing. Paying down revolving debt has virtually
no risk. No default risk.
What is a corporation?
- Company that is considered a
MOS 2277B 001
250 851 866
Assets & Liabilities
The following are a listing of all my assets and liabilities as at June 30 th, 2017: