Test for current control 2

Which bond is secured by a lien on real property?

• Mortgage bond
• Eurobond
• Convertible bond
• Callable bond

What is a special type of bond that can be exchanged into some more junior grade of securities (usually into common stock)?

• A convertible bond
• A Eurobond
• A callable bond
• A mortgage bond

Who issues Treasury bonds in the USA?

• The federal government
• State and local governments
• Corporations
• Foreign governments and foreign corporations

Who issues municipal bonds in the USA?

• State and local governments only
• The federal government only
• Corporations only
• Foreign governments and foreign corporations only

What is the process of diversifying an investment portfolio across various asset categories, like stocks and bonds and cash to balance the risk/reward tradeoff?

• Asset allocation
• Bond allocation
• Stock allocation
• Cash allocation

Which bonds do not need paying any interest over the life of the bond?

• Zero coupon bonds
• Floating rate bonds
• Junk bonds
• Convertible bonds

What is the name of the rate at which the present value of all future interest payments and the principal payment is equal to the current bond price?

• Yield-to-maturity
• Dividend yield
• Nominal yield
• Current yield

What is the name of bonds, issued in a country different from the one in which the currency of the bond is denominated?

• The Eurobonds
• The convertible bonds
• The junk bonds
• The callable bonds

What does the share's valuation process determine?

• Economic worth of a company's stock
• The percentage of owned shares from the company
• A share price
• Rate of return of the issuer of shares

What are the main factors affecting valuation of shares?

• Demand and supply for shares, past performance of the company, growth prospectus of the company
• Industry indicators, the economic climate, external factors
• Complexity of a lot of financial transactions, external and internal factors
• Personal income tax rate