Exam 10: Bonds and Stocks: Characteristics and Valuation

Bonds that have coupons that are literally clipped and presented,like a check,to the bank for payment,and where the bond issuer does not know who is receiving the coupon payments are called:

Firms issue more equities than bonds for the following reason(s).

Mortgage bonds are secured by home mortgages.

Which of the following are not bond rating agencies?

Bond issues of a single firm can have different bond ratings if their security provisions differ.

Two sources of risk that investors in nondomestic securities face beyond those of domestic securities include:

Bond ratings are paid for by:

AT&T 10-year,$1,000 par value bond is selling at $1,158.91.Interest on this bond is paid semianually.If the annual yield to maturity is 14%,what is the annual coupon rate of the AT&T bond?

According to Standard & Poors and Fitch,bonds rated ______ and below are considered to be speculative or "junk."

Putable bonds are sometimes referred to as:

When the market interest rate is above the coupon rate for a particular quality of bond,the bond will be priced:

To determine risks of nondomestic bonds,a multinational corporation must consider all but which one of the following risks?

All of the following represent bonds secured by real assets except a (n):

Which of the following is not a rating category used when rating bonds?

Reasons for stock repurchases include all of the following EXCEPT:

When the market interest rate rises for a particular quality of bond,the price of the bond falls,which gives investors a new:

Bondholders have priority claims over equity holders to a firm's assets and cash flows.

Zero coupon bonds are not suited for tax-exempt accounts such as IRAs or pension funds.

Reasons for stock repurchases include all of the following EXCEPT:

The _____________ policy states that dividends will vary based upon how much excess funds the firm has from year-to-year,whereas under a ________________ policy the firm pays a constant percentage of earnings as dividends,so as earnings rise and fall so does the dollar amount of dividends.