Which of the following statements is CORRECT? O a. The NYSE is an example of an over-the-counter market. O b. Only institutions, and not individuals, can engage in derivative market transactions. O c.If you purchase 100 shares of Disney stock from your brother-in-law, this is an example of a primary market transaction. O d. As they are generally defined, money market transactions involve debt securities with maturities of less than one year. O e. If Disney issues additional shares of common stock through an investment banker, this would be a secondary market transaction.

Which of the following statements is CORRECT? O a. The NYSE is an example of an over-the-counter market. O b. Only institutions, and not individuals, can engage in derivative market transactions. O c.If you purchase 100 shares of Disney stock from your brother-in-law, this is an example of a primary market transaction. O d. As they are generally defined, money market transactions involve debt securities with maturities of less than one year. O e. If Disney issues additional shares of common stock through an investment banker, this would be a secondary market transaction.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Which of the following is a disadvantage to a corporation issuing bonds? Group of answer choices A)The required interest payment must be met each period. B)The liquid nature of the bonds makes them attractive to investors who may not want to hold them to maturity. c)The large principal payment due at maturity. d)Both the first and third answers above are both disadvantages. e)The first, second and third answers above are all disadvantages.
If a company issues $15,000,00 worth of bonds with a face interest rate equal to the market interest rate, the bonds will sell at an amount Group of answer choices A)less than $15,000,000. b)equal to $15,000,000. C)greater than $15,000,000. D)that can’t be determined from the information provided in the problem.
when are corporations likely they called the Bonds? A. When the market interest rate is higher than the contract rate, b. When the contract rate is higher than the market rate. C. When their bonds at selling at par with market d. When standard and poor are bullish about treasury bills E. None of the above
Which statement is incorrect? Zero-coupon bonds are normally sold at a big discount because buyers do not earn any coupon payment Euro bonds are bonds that are sold by US firms to raise US dollar Major investors of preferred stocks are senior people as preferred stocks pay dividend like bonds but give holders voting right like stocks. Junk bonds are often used for mergers and acquisition deals
Hi I need help with this problem fill in options for blank 1 is debt or equity fill in options for blank 2 is a claim to partial ownership In or an IOU, or promise to pay, from fill in options for blank 3 is the stock holders or Osvaldo and the other bondholders fill in options for blank 4 is higher or lower
The time value of money is used in calculating bond prices because: Group of answer choices A - The company might choose to repay the bonds prior to their maturity date B - Bond investors receive future payments and purchase bonds with current dollars C - The amount to be repaid at maturity will change as market rates change D - Cash interest payments to bondholders will change as market rates change
Zero coupon bonds: O a. create annual taxable income to individual bondholders. O b. create a tax deduction for the issuer only at maturity. O care issued only by the U.S. Treasury. O d. are issued at a premium. O e. are valued using simple interest.
Which of the following securities has a component of liquidity risk premium? Long-term government bonds only since all entities that issued long-term securities may be default in payment. All types of government or corporate security because these constituted to be a liability in the part of the issuer. Long-term corporate security because corporations may find it hard to convert assets to cash for payment. All government bond because this type of security is presumed to be always liquid.
A 151.
What is NOT considered as an advantage of buying bonds in the Philippines? * Bonds are much less volatile compared to other forms of investments that can fluctuate depending on the market trends. Bonds perform better than the high-risk, high-reward stock investments. Interest on bonds are paid periodically, giving the buyer fixed passive income on top of his other sources of income or revenue. The income one receives from bonds is much higher compared to the savings accounts and time deposits. The low-risk features of bonds can offset potential losses that high-risk investments may incur.
Loptech, a technology firm, wants to issue bonds for investment purposes. Loptech has one of the best credit ratings in the industry. Market rates for debt instruments average at .5% interest. Based on its credit rating, Loptech would likely sell bonds that pay _____. A. Indeterminable with current information B. 0.25% C. 0.5% D. 0.75%
Capital markets trade securities that: mature in more than one year. has relatively higher risk of capital loss. must be guaranteed by the federal government. 1 only. 2 only. 1 and 2 only 1 and 3 only

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