Exam 2: Investment Alternatives: Generic Principles All Investors Must Know

What stated coupon rate would a taxable corporate bond have to have to be comparable to a municipal bond with a coupon rate of 7 percent if the investor is in the 28 percent tax bracket?

Bond ratings are primarily used to assess interest rate risk.

The premium on an option is the:

In what sense is a stock selling for 12 times earnings "cheaper" than a stock with a P/E ratio of 20?

The major attraction of municipal bonds is their extremely low risk.

What are two direct and one indirect method for individuals to invest in foreign stocks?

The par value of Inferno, Inc. common stock is $0.50, the earnings per share is $6, and it trades at a P/E of 15. What is Inferno, Inc.'s stock price?

---------------- represent shares of foreign companies kept in banks.

If an investor states that Intel is overvalued at 65 times, he is referring to:

How is the earnings retention rate related to the dividend payout rate?

Which of the following statements is true regarding asset-backed securities (ASB)?

Zero-coupon bonds are similar to Treasury bills in that both:

The par value of Blaze, Inc. common stock is $0.50, the earnings per share is $4, the market price is $60, the dividend per share is $1. Calculate the dividend yield.

Treasury bonds generally have maturities of:

Treasury notes represent the nontraded debt of the U.S. government.