Homework Answers
| Option E is the answer | |
| Bonds which are not collateralized by the issuer are called as the unsecured bonds. Unsecured bonds are backed only br by the issuer's good credit standing |
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Bonds which are not collateralized by specific assets in the event the borrowing company defaults on...
6. Chester Corp issues $10,000 of 5 year bonds that pay interest semiannually. The bonds can...
6. Chester Corp issues $10,000 of 5 year bonds that pay interest semiannually. The bonds can be redeemed by Chester prior to maturity at Chester's discretion. Since Chester has questionable credit, Chester offers PP&E to collateralize the bonds. The bonds are not registered. What type of bonds has Chester issued? a. Secured, Serial, Callable, Revenue bonds b. Secured, Term, Deep Discount, Revenue bonds c. Secured, Serial, Callable, Bearer bonds d. Secured, Term, Commodity Backed, Bearer bonds e. Unsecured, Serial, Callable,...
Question 1 ____ bonds are backed by specific assets of the company, which are pledged as...
Question 1 ____ bonds are backed by specific assets of the company, which are pledged as collateral. Debenture Conventional Holding Secured Convertible Question 2 Seattle Music, Inc., recently offered bonds for sale to the public. The unsecured corporate bond paid interest of 9% to investors for the twenty-year life of the bonds. Seattle Music is obligated to: Represent each bondholder as an owner in the company. Pay interest semi-annually. Pay stockholders their...
20. Secured bonds are bonds that a. are in the possession of a bank. b. are...
20. Secured bonds are bonds that a. are in the possession of a bank. b. are registered in the name of the owner. c. have specific assets of the issuer pledged as collateral. d. have detachable interest coupons. 21. Bonds that may be exchanged for common stock at the option of the bondholders are called a. options. b. stock bonds. c. convertible bonds. d. callable bonds.
b. Bonds that have specific assets of the issuer pledged as collateral. Secured bonds C Events...
b. Bonds that have specific assets of the issuer pledged as collateral. Secured bonds C Events with uncertain outcomes that may represent potential liabilities. d. Bonds that can be converted into common stock at the bondholder's option Unsecured bonds e. A legal document that indicates the name of the issuer, the face value of the bonds, and other data such as the contractual interest rate and the maturity date of the bonds. [ Bonds that the issuing company can redeem...
About Bond rating a. poor bond rating is caused by the low counpon rate and thus...
About Bond rating a. poor bond rating is caused by the low counpon rate and thus the YTM is low b. secured bonds should have better rating than unsecured bond of the same firm c. a bond without sinking fund should a better rating. d. a callable bond should have lower yield. e. a convertible bond should have higher yield than a non convertiable one.
38 Which one of the following is a true statement regarding corporate bonds?--- A) A corporate...
38 Which one of the following is a true statement regarding corporate bonds?--- A) A corporate debenture is a secured bond B) A corporate callable bond gives its holder the right to exchange it for a specified number of the company's common shares Holders of corporate bonds have voting rights in the company. D) A corporate convertible bond gives its holder the right to exchange it for a specified number of the company's common shares.
Chapter 9 Homework Assignment 1) A written promise to repay a loan principal plus interest at...
Chapter 9 Homework Assignment 1) A written promise to repay a loan principal plus interest at a specific future date is A) a promissory note. B) a line of credit. C) commercial paper. D) a product warranty. E) a returnable deposit. 2) ________ are subject to redemption before maturity at the option of the issuer. A) Debentures B) Mortgage bonds C) Callable bonds D) Sinking fund bonds E) Convertible bonds 3) Convertible bonds are attractive to investors because A) the...
Select the phrase that best fits each term of the description A through H Description Items...
Select the phrase that best fits each term of the description A through H Description Items A. Records and tracks the bondholders' names. Registered bond B. Is unsecured, backed only by the issuer's credit standing C. Has varying maturity dates for amounts owed D. Identifies rights and responsibilities of the issuer and the bondholders. Serial bond Bond indenture Convertible bond E. Can be exchanged for shares of the issuer's stock F. Unregistered bonds which are payable to whoever holds them....
A coupon bond which pays interest of $60 annually, has a par value of $1,000, matures...
A coupon bond which pays interest of $60 annually, has a par value of $1,000, matures in 5 years, and is selling today at a 584.52 discount from par value. The approximate yield to maturity on this bond is A6% B. 7% C. 8% D. 9% For a discount bond, its coupon rate is_than its yield to maturity and its price is expected to ___over the years. A B. C. D. Greater; increase Greater; decrease Lower; increase Lower; decrease A...
____8. Which of the following is NOT a characteristic of bonds? A- Secured bonds B-Coupon bonds...
____8. Which of the following is NOT a characteristic of bonds? A- Secured bonds B-Coupon bonds C-Variable bonds D-Serial bonds E-All of these 9. The total interest expense associated with a bond issue is the sum of the actual interest payments: A-Plus any related bond discount B-Plus any related bond premium C-Minus any related bond discount D-Minus any related bond premium E-Both A and D 10. The amount at which bonds payable should be shown on the balance sheet is...
6. Chester Corp issues $10,000 of 5 year bonds that pay interest semiannually. The bonds can be redeemed by Chester prior to maturity at Chester's discretion. Since Chester has questionable credit, Chester offers PP&E to collateralize the bonds. The bonds are not registered. What type of bonds has Chester issued? a. Secured, Serial, Callable, Revenue bonds b. Secured, Term, Deep Discount, Revenue bonds c. Secured, Serial, Callable, Bearer bonds d. Secured, Term, Commodity Backed, Bearer bonds e. Unsecured, Serial, Callable,...
20. Secured bonds are bonds that a. are in the possession of a bank. b. are registered in the name of the owner. c. have specific assets of the issuer pledged as collateral. d. have detachable interest coupons. 21. Bonds that may be exchanged for common stock at the option of the bondholders are called a. options. b. stock bonds. c. convertible bonds. d. callable bonds.
b. Bonds that have specific assets of the issuer pledged as collateral. Secured bonds C Events with uncertain outcomes that may represent potential liabilities. d. Bonds that can be converted into common stock at the bondholder's option Unsecured bonds e. A legal document that indicates the name of the issuer, the face value of the bonds, and other data such as the contractual interest rate and the maturity date of the bonds. [ Bonds that the issuing company can redeem...
38 Which one of the following is a true statement regarding corporate bonds?--- A) A corporate debenture is a secured bond B) A corporate callable bond gives its holder the right to exchange it for a specified number of the company's common shares Holders of corporate bonds have voting rights in the company. D) A corporate convertible bond gives its holder the right to exchange it for a specified number of the company's common shares.
Select the phrase that best fits each term of the description A through H Description Items A. Records and tracks the bondholders' names. Registered bond B. Is unsecured, backed only by the issuer's credit standing C. Has varying maturity dates for amounts owed D. Identifies rights and responsibilities of the issuer and the bondholders. Serial bond Bond indenture Convertible bond E. Can be exchanged for shares of the issuer's stock F. Unregistered bonds which are payable to whoever holds them....
A coupon bond which pays interest of $60 annually, has a par value of $1,000, matures in 5 years, and is selling today at a 584.52 discount from par value. The approximate yield to maturity on this bond is A6% B. 7% C. 8% D. 9% For a discount bond, its coupon rate is_than its yield to maturity and its price is expected to ___over the years. A B. C. D. Greater; increase Greater; decrease Lower; increase Lower; decrease A...
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