更多"[单选题]As a bond's time to maturity i"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]A discount bond's coupon rate is equal to the annual interest divided by the:
A. call price.
B. current price.
C. face value.
D. clean price.
E. dirty price.
Difficulty: 1 Easy
Topic: Bond coupons
Learning Objective: 07-01 Define important bond features and types of bonds.
[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]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] 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.
[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.
[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.
[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]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.
[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.
[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]You own a bond that pays an annual coupon of 6 percent that matures five years from now. You purchased this 10-year bond at par value when it was originally issued. Which one of the following statements applies to this bond if the relevant market interest rate is now 5.8 percent?
A. The current yield to maturity is greater than 6 percent.
B. The current yield is 6 percent.
C. The next interest payment will be $30.
D. The bond is currently valued at one-half of its issue price.
E. You will realize a capital gain on the bond if you sell it today.
Difficulty: 1 Easy
Topic: Interest rate risk
Learning Objective: 07-02 Explain bond values and yields and why they fluctuate.
