Test 2- Chapters 6-15
1. _ is a short-term debt instrument issued only by well-known, creditworthy firms and is normally issued
to provide liquidity or finance a firm's investment in inventory and accounts receivable.
A banker's acce
Chapter 10 Question 3
Firms raise funds via IPO to source capital for expansion of operations; retirement of
debt which reduces the firms repayment obligations and improves cash flows; and
offers an exit route to venture capital investors to divest or sel
An investor purchased an NCD a year ago in the secondary market for
$980,000. He redeems it today and receives $1,000,000. He also receives
interest of $30,000. The investor's annualized yield on this investment is
a. 2.0 percent.
b. 5.10 pe