Finance Final Quiz

Long-term debt instrument indicating that a corporation has borrowed a certain amount of money and promises to repay it:

Which (s) of the following IS (ARE) NOT a corporate bond feature (s) ?

• Maturity

• Par Value

• Interest Rate

• Indenture

The following definition refers to which corporate bond feature : "Compensation for loaning the issuer a given amount of money".

Which options are elements of the Trustee:

I. A trustee cannot be an individual.

II.Paid to act as watchdog.

III. Can take specified actions if terms are violated.

IV. Crucial to guarantee the safety of a bond issue.

• II and III

• I and IV

• V, IV and III

• All of them

Which one of the options below , matches with the following definition : It gives the issuer the opportunity to repurchase bonds prior tu maturity".

• Yields

• Purchase Warrants

• Conversion

• Call feature

A bond issued by a Russian corporation in the European market that pays interest and principal in US dollar.

The above is an example of which type of international bond?

Consist of funds provided by the firm's owner:

Common stockholders are sometimes referred to as :

The common stock of a firm can be owned by investors in different ways. Which one (s) of the following ARE types of ownership:

• Privately owned

• Publicly owned

• Closely owned

• Widely owned

"Reduction in each previous shareholder's fractional ownership."

The above is a description of which preemptive right :

• Dilution of ownership

• Dilution of earnings