FM-MIDTERM P7-9

What refers to either a debt-related financial instrument like bonds and notes or an equity-related instrument like preferred stock?

• Investment Instruments

• Pricing Financing Derivatives

• Asset Pricing

• Structured Financial Products

What means figuring out how much special financial products are worth, which are like bonds but have extra features that depend on the value of things like stocks, gold, or interest rates?

• Pricing Issued Notes Derivatives

• Bond Pricing

• Convertible Pricing

• Derivative Valuation

What is the method used by issuers and underwriters to set the initial or conversion price for convertible bonds, or the exercise price for warrants, to attract investors while balancing the issuer's capital needs?

• Pricing Model

• Pricing Strategy

• Option Pricing

• Conversion Rate

What is the underwriting process of either an IPO or right issues, which takes place in a limited period of time, normally less than a week to a couple of weeks?

• Secondary Market

• Primary Market

• Exchange Listing

• Private Placement

What is the amount used to reduce the loan balance?

• Interest Payment

• Loan Amortization

• Principal Repayment

• Loan Forgiveness

What is a contribution technique for capital budgeting analysis?

• Net Present Value

• Profitability Index

• Internal Rate of Return

• Payback Period

What is the right to sell a common stock?

• Call Option

• Put Option

• Stock Right

• Short Selling

What is an interest rate benchmark used in internationally-transacted loan agreements?

• LIBOR

• Reference Rate

• Prime Rate

• Base Rate

What is the process of repaying an old debt with a high interest rate and re-borrowing a new debt with a lower interest rate?

• Debt Refinancing

• Repay-And-Borrow Scheme

• Loan Consolidation

• Debt Restructuring

What is a financing strategy used by any listed company to raise additional capital after an IPO has been launched?

• Public Offering

• Right Issues

• Follow-On Offering

• Private Placement