Question

Bond questions 52018 PART-1-Please SELECT from the choices presented bonds payable callable bond convertible bond Annuities Streams of level (ie, the same amount each pariod) payments occurring on regular 1. intervals An obligation dvded into transtferable units requiring the issuer to make periodic interest payments and an eventual repayment of the face amount, 2. A bond that provides the issuer an option to reacquire the bends before scheduled 3 maturity at a preset price A bond that may be converted by the holder into stock of the issuing company 4. debenture bond effective-interest amortiration junk bond coupon bond A bond that has detachable coupons that are exchanged for interest payments historically popular but faling into disuse A bond that lacks specific collateral, payment is only assured by the general faith and i creditworthiness of the issuer 6 A theoretically preferable method for amortiging premiums and discounts on bonds, interest expernse is a constant percentage of the bonds ever-changing carrying 7. value A bond that is issued by a company of low credit worthiness, and entails substantial risk gf nonpayment: generally offers a high interest rate to compensate for the high risk registered bond secured bond nonredeemable bond nonrefundable bond A bond that cannot be paid off before scheduled maturity 8. A bond that cannot be paid off with the proceeds of a new debt issue 9. Page 1 of 3

Answer 1

1. Annuity

2. Bond Payable

3. Callable Bond

4. Convertible Bond

5. Coupon Bond

6. Debenture Bond

7. Effective- interest amortization

A bond that is issued by a company of low credit worthiness and entails substantial risk of nonpayment; generally offers a high interest rate for compensation of high risk is

JUNK BOND

8. Non redeemable bond

9. Non refundable bond