Financial Markets

¨A company has issued share capital of £1 million and an outstanding corporate bond issue of £300,000. To fund its expansion, the company issues additional corporate bonds for £400,000. All other things being equal, after the issue of the additional bonds, the ratio of the company’s total debt to its equity will be:

• 0.3:1

• 0.4:1

• 0.7:1

• 2:1.7

Which financial asset is traded on money markets rather than capital markets?

• Treasury Bill

• Debentures

• Equity Shares

• Corporate Bond

Which of these companies are not PLC's and therefore not listed on the stock exchange?

• Tesco

• Specsavers

• Just Eat

• Easyjet

What is the name given to the benchmark interest rate at which major global banks lend to one another?

• REPO rate

• Base Rate

• Central Bank Rate

• LIBOR

What is the long-term interest rate on a bond called?

• Exchange Rate

• Yield

• Prime Rate

• Coupon

Is football coming home?

• 100% yes

• Wrong answer

• Wrong answer

• Wrong answer