更多"[单选题]A discount bond's coupon rate "的相关试题:
[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] The nearer a bond's price is to its par value and the longer the maturity of the bond, the more closely the ________ approximates the ________.
A. current yield; yield to maturity
B. current yield; coupon rate
C. yield to maturity; current yield
D. yield to maturity; coupon rate
[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.
[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]A bond's principal is repaid on the ________ date.
A. coupon
B. yield
C. maturity
D. dirty
E. clean
Difficulty: 1 Easy
Topic: Bond features
Learning Objective: 07-01 Define important bond features and types of bonds.
[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.
[单选题]A project's cash flow is equal to the project's operating cash flow:
A. plus the project's depreciation expense minus both the project's taxes and capital spending.
B. minus both the project's change in net working capital and capital spending.
C. minus the project's change in net working capital plus all of the depreciation expenses.
D. plus the project's depreciation expenses minus the project's taxes.
E. minus the project's taxes.
Difficulty: 1 Easy
Topic: Cash flows
Learning Objective: 10-01 Determine the relevant cash flows for a proposed project.
[单选题] (I. The coupon rate is the rate of interest that the issuer of the bond must pay.
(II. The coupon rate on old bonds fluctuates with market interest rates so they will remain attractive to investors.
A. (I. is true, (II. false.
B. (I. is false, (II. true.
C. Both are true.
D. Both are false.
[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] A secured bond is backed by
A. the general creditworthiness of the borrower.
B. an insurance company's financial guarantee.
C. the expected future earnings of the borrower.
D. specific collateral.
[单选题] The risk on an agency bond is
A. high.
B. zero.
C. moderate.
D. low.
[单选题] The ________ rate is the rate of interest that the issuer must pay.
A. market
B. coupon
C. discount
D. funds
[简答题] Interest rates are determined in the bond markets.
[单选题] A requirement in the bond indenture that the firm pay off a portion of the bond issue each year is called
A. a sinking fund.
B. a call provision.
C. a restrictive covenant.
D. a shelf registration.
[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.
[单选题]The price sensitivity of a bond increases in response to a change in the market rate of interest as the:
A. coupon rate increases.
B. time to maturity decreases.
C. coupon rate decreases and the time to maturity increases.
D. time to maturity and coupon rate both decrease.
E. coupon rate and time to maturity both increase.
Difficulty: 1 Easy
Topic: Interest rate risk
Learning Objective: 07-02 Explain bond values and yields and why they fluctuate.
[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.
[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.
