Exam 10: Medium-To-Long-Term Debt

Many securities contain an option that is included as part of a bond or preferred share,which allows the holder to convert the security into a predetermined number of shares.This feature is called a:

The terms subordinated debt and unsecured note are interchanged as they are both corporate bonds that have identical features.

Which of the following rates serves as a reference interest rate in Australia?

When the coupon rate of a bond is above the current market interest rates,a bond will sell at:

Compared with a company with a strong financial rating,a company with a weaker rating is likely to be charged:

If the interest rates on shorter term-to-maturity deposits are higher than those of longer term deposits,it is likely that the costs for the longer term financing for a company are:

Which of the following is NOT an advantage of leasing from the lessor's perspective (compared with offering a straight loan)?

Which of the following types of bond generally has the lowest interest rate?

The type of lease where the costs of ownership and operation are borne by the lessee,who agrees to make a residual payment at the end of the lease period,is a/an:

When the coupon rate of a bond is equal to the current market interest rates,a bond will sell at:

If a bond investor pays $1030 for an annual coupon bond with a face value of $1000,it follows that:

Discuss the use of a prospectus in relation to the issue of debt securities.

For what type of lease does the lessee borrow a large part of the funds,typically in a multi-million dollar arrangement,often with a lease manager,while one or more financial institutions provide the remainder?

Which of the following statements best describes a fully amortised term loan?

The coupon interest of a bond is calculated based on its _______,and is paid periodically.

A long-term loan will generally attract a higher rate of interest than a short-term loan.

A key difference between a positive covenant and a negative covenant is,for a:

The fees charged by banks onto the total amount of the loan facility and are normally payable in advance are:

In relation to long-term financing,an amortised loan involves:

A direct finance lease is best described as a/an: