Corporate FIN

Hello

 

A bond will sell at a premium when its coupon interest rate

 

[removed]

is lower than the market interest rate on similar bonds

 

 

 

[removed]

varies more than the market interest rate on similar bonds

 

 

 

[removed]

exceeds the market interest rate on similar bonds

 

 

 

[removed]

equals the market interest rate on similar bonds

 

A bond will sell at a premium when its coupon interest rate

 

[removed]

is lower than the market interest rate on similar bonds

 

 

 

[removed]

varies more than the market interest rate on similar bonds

 

 

 

[removed]

exceeds the market interest rate on similar bonds

 

 

 

[removed]

equals the market interest rate on similar bonds

 

A bond pays a coupon interest rate of 7.5%. The market rate on similar bonds is 8.4%. The bond will sell at _____.

 

[removed]

par

 

 

 

[removed]

a discount

 

 

 

[removed]

a premium

 

 

 

[removed]

book value

 

The Efficient Market Hypotheses (EMH) consist of all of the following forms except

 

[removed]

the Strong Form.

 

 

 

[removed]

the Weak Form.

 

 

 

[removed]

The Semi-Strong Form.

 

 

 

[removed]

the Semi-Efficient Form.

 

An example of a stock index is the

 

[removed]

New York Stock Exchange

 

 

 

[removed]

Chicago Board of Trade

 

 

 

[removed]

Dow Jones Industrial Average

 

 

 

[removed]

London Stock Exchange

 

An example of a stock index is the

 

[removed]

New York Stock Exchange

 

 

 

[removed]

Chicago Board of Trade

 

 

 

[removed]

Dow Jones Industrial Average

 

 

 

[removed]

London Stock Exchange

 

An active secondary market for debt or equity securities makes raising new capital less expensive for firms.

 

 

 

[removed]

True

 

 

 

[removed]

False

 

Secondary market transactions in the United States mostly take place over the counter and not in exchanges.

 

 

 

[removed]

False

 

 

 

[removed]

True

 

Preferred dividend payments are fixed amounts paid regularly, similar to the interest payments on corporate bonds.

 

 

 

[removed]

False

 

 

 

[removed]

True

 

The market considers preferred stock to be a debt security because the dividend payment is a fixed contractual obligation and has credit ratings like bonds.

 

 

 

[removed]

False

 

 

 

[removed]

True

 

Preferred stock with no fixed maturity can be valued as a perpetuity.

 

 

 

[removed]

False

 

 

 

[removed]

True

 

 

 

 
******CLICK ORDER NOW BELOW TO GET THE ANSWER TO THIS ASSIGNMENT OR ANY OTHER ASSIGNMENT, DISCUSSION, ESSAY, HOMEWORK OR QUESTION*******."
Open chat