FM 7 - Mock Quiz

Corporate bonds that are perceived to have very high risk are referred to

The annual coupon of a bond divided by its face value is called the bond's:

This provision is considered to be

an advantage to the remaining bondholders because it reduces the payments necessary at maturity.

A bond with a face value of $1,000 that sells for less than $1,000 in the market is called a:

allows investors to exchange the

bond for a stated number of shares of the firm's common stock.

are long-term debt securities that

are issued at a deep discount from par value.

are long-term debt securities with a

coupon rate that is periodically adjusted

A bond with a face value of $1,000 that sells for more than $1,000 in the market is called a:

are intended for investors who wish to ensure that the returns on their

investments keep up with the increase in prices over time.

Payments on bonds are supported bu the municipal government's ability to tax