Below is the characteristics of bonds except

Long term financing

Quiz
•
Business
•
University
•
Hard
Farah Alisa
Used 7+ times
FREE Resource
10 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
Par value
Maturity period
Coupon interest
voting right
2.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
The shareholders that do not get benefits even if the company’s earnings grow is known as ________________________.
preferred shareholders
common shareholders
debt holders
hybrid shareholders
3.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
Mr Smith owns a bond that will pay him RM75 each year in interest plus a RM1,000 principal payment at maturity. The amount of RM75 is called ______________________.
face value
interest rate
coupon payment
yield to maturity
4.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
What is the value of RM1,000 par value bond with 8 percent coupon rate when the required rate of return is 15 percent and maturity period is 5 years?
value of bond is more than its par value
value of bond equal than its par value
value of bond is less to its par value
value of bond cannot be determined
5.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
The preferred share dividend is RM2.50 and the required rate of return is 5 percent. The value of preferred share would be _______________.
RM20
RM52
RM125
RM50
6.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
Which one of the following is a type of equity security that has a fixed dividend and a priority status over equity securities?
bond
preferred share
common share
warrant
7.
MULTIPLE CHOICE QUESTION
1 min • 1 pt
Mudajaya Sdn Bhd plans to issue bonds that pay 5 percent coupon interest with maturity period of 10 years. The bond has an RM1,000 par value and the required rate of return is 7 percent compounded annually. Compute the value of the bond.
RM859.53
RM900
RM985.94
RM753.34
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