Which of the following apply to bonds? Select all the apply a. Earns gains from dividends b. Earns gains from interest c. Prices are determined by present value d. Prices are determined by supply and demand e. Have primary and secondary markets f. Have primary markets only

2. Term structure premium, an inflation of bond and bond default premium are included in A. risk factors B. premium factors C. bond buying factors D. multi model

6. When is interest expense more than interest paid? a. when bonds are sold at a premiumb. when bonds are sold at parc. when bonds are sold at a discountd. when bonds are sold at a yield

The rate of interest actually earned by bondholders is called the Select one: O a. effective rate. O b. stated rate. O c. effective yield or market rate. O d. yield rate.

Which theory of the term structure proposes that bonds of different maturities are not substitutes for one another? a. Market segmentation theory b. Expectations theory c. Separable markets theory O d. Liquidity premium theory

What does the book value of debt and equity refer to? O A. The par values of common stock and the maturity values of debt B. What a willing buyer and a willing seller will exchange the asset for O C. The values at which they are traded in the financial markets D. The values at which debt and equity are carried on a balance sheet

1. what are bonds and why would a company use them? 2.  how do you value a bond? 3. what are bond yields and what are the determinants of bond yields?

1. What is the relationship between interest rate level and bond price? Why must this relationship be true? How has the current rate environment impacted the prices of bonds?

Which of the following is correct?   a. The terms, “yield rate”, “ stated rate”, and “market rate” are generally interchangeable when referring to interest on bonds.   b. The yield or effective interest rate on a bond is equal to the stated rate if the bond premium or discount is amortized by using the straight-line method.   c. Interest revenue and expense related to bonds are always computed using the stated rate of interest.   d. If a bond is sold at its face amount, the stated and effective interest rates are the same.

With regard to interest rate sensitivity measures and bonds: Group of answer choices C. Convexity attempts to capture the sensitivity of a bond’s duration to changes in interest rates. D. Both B & C B. Duration is related to yield approximation and convexity is related to price. A. Convexity is related to yield approximation and duration is related to price