更多"[单选题] The nearer a bond's price is "的相关试题:
[多选题]Nationality was a legal bond having as its basis:
A. a social factor attachment.
B. a genuine connection of existence.
C. a genuine connection of interests and sentiments.
D. the existence of reciprocal rights and duties.
[单选题]A $1,000 par value corporate bond that pays $60 annually in interest was issued last year. Which one of these would apply to this bond today if the current price of the bond is $996.20?
A. The bond is currently selling at a premium.
B. The current yield exceeds the coupon rate.
C. The bond is selling at par value.
D. The current yield exceeds the yield to maturity.
E. The coupon rate has increased to 7 percent.
Difficulty: 1 Easy
Topic: Bond yields and returns
Learning Objective: 07-02 Explain bond values and yields and why they fluctuate.
[单选题] When an old bond's market value is above its par value, the bond is selling at a ________. This occurs because the old bond's coupon rate is ________ the coupon rates of new bonds with similar risk.
A. premium; below
B. premium; above
C. discount; below
D. discount; above
[单选题]Assume you graph a project's net present value given various sales quantities. Which one of the following is correct regarding the resulting function?
A. The steepness of the function relates to the project's degree of operating leverage.
B. The steeper the function, the less sensitive the project is to changes in the sales quantity.
C. The resulting function will be a hyperbole.
D. The resulting function will include only positive values.
E. The slope of the function measures the sensitivity of the net present value to a change in sales quantity.
Difficulty: 1 Easy
Topic: Sensitivity analysis
Learning Objective: 11-01 Perform and interpret a sensitivity analysis for a proposed investment.
[单选题] The bond markets are important because
A. they are easily the most widely followed financial markets in the United States.
B. they are the markets where interest rates are determined.
C. they are the markets where foreign exchange rates are determined.
D. all of the above.
[单选题] The risk on an agency bond is
A. high.
B. zero.
C. moderate.
D. low.
[简答题] Interest rates are determined in the bond markets.
[单选题] The process of underwriting a stock or bond issue requires that the investment bank
A. assure investors that the issue will provide them a high return.
B. purchase the entire issue at a predetermined price if the quantity demanded by consumers is insufficient at the predetermined price.
C. purchase the entire issue at a predetermined price and then resell it in the market.
D. do both A and B of the above.
[简答题] A sinking fund is a requirement in the bond indenture that the firm pay off a portion of the bond issue each year.
[单选题] To sell an old bond when interest rates have ________, the holder will have to ________ the price of the bond until the yield to the buyer is the same as the market rate.
A. risen; lower
B. risen; raise
C. fallen; lower
D. risen; inflate
[简答题] A bond denominated in euros and issued in a country that uses the euro as its currency is an example of a Eurobond.
[单选题]Round Dot Inns is preparing a bond offering with a coupon rate of 6 percent, paid semiannually, and a face value of $1,000. The bonds will mature in 10 years and will be sold at par. Given this, which one of the following statements is correct?
A. The bonds will become discount bonds if the market rate of interest declines.
B. The bonds will pay 10 interest payments of $60 each.
C. The bonds will sell at a premium if the market rate is 5.5 percent.
D. The bonds will initially sell for $1,030 each.
E. The final payment will be in the amount of $1,060.
Difficulty: 1 Easy
Topic: Interest rate risk
Learning Objective: 07-02 Explain bond values and yields and why they fluctuate.
[单选题] The bond contract that states the lender's rights and privileges and the borrower's obligations is called the
A. bond syndicate.
B. restrictive covenant.
C. bond covenant.
D. bond indenture.
[简答题] The current yield on a bond is a good approximation of the bond's yield to maturity when the bond matures in five years or less and its price differs from its par value by a large amount.
[单选题] (I. A bond is a debt security that promises to make payments periodically for a specified period of time. (II. A stock is a security that is a claim on the earnings and assets of a corporation.
A. (I. is true, (II. false.
B. (I. is false, (II. true.
C. Both are true.
D. Both are false.
[单选题] (I. To sell an old bond when interest rates have risen, the holder will have to discount the bond until the yield to the buyer is the same as the market rate. (II. The risk that the value of a bond will fall when market interest rates rise is called interest-rate risk.
A. (I. is true, (II. false.
B. (I. is false, (II. true.
C. Both are true.
D. Both are false.
[单选题]A newly issued bond has a coupon rate of 7 percent and semiannual interest payments. The bonds are currently priced at par. The effective annual rate provided by these bonds must be:
A. 3.5 percent.
B. greater than 3.5 percent but less than 7 percent.
C. 7 percent.
D. greater than 7 percent.
E. less than 3.5 percent.
Difficulty: 1 Easy
Topic: Interest rate risk
Learning Objective: 07-01 Define important bond features and types of bonds.
[单选题]Bert owns a bond that will pay him $45 each year in interest plus $1,000 as a principal payment at maturity. What is the $1,000 called?
A. Coupon
B. Face value
C. Discount
D. Yield
E. Dirty price
Difficulty: 1 Easy
Topic: Bond features
Learning Objective: 07-01 Define important bond features and types of bonds.
[单选题]As a bond's time to maturity increases, the bond's sensitivity to interest rate risk:
A. increases at an increasing rate.
B. increases at a decreasing rate.
C. increases at a constant rate.
D. decreases at an increasing rate.
E. decreases at a decreasing rate.
Difficulty: 1 Easy
Topic: Interest rate risk
Learning Objective: 07-02 Explain bond values and yields and why they fluctuate.
