Why is the bond market less transparent than the stock market? Multiple choice question. Media reports do not adequately cover the bond market. The bond market is not subject to any regulations. The bond market is bigger than the stock market. Many bond transactions are negotiated privately.
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Why is the bond market less transparent than the stock market?
Media reports do not adequately cover the bond market.
The bond market is not subject to any regulations.
The bond market is bigger than the stock market.
Many bond transactions are negotiated privately.
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- a). Companies pay rating agencies to rate their bonds, and the costs can be substantial. However, companies are not required to have their bonds rated in the first place; doing so is strictly voluntary. So, why do they do it? b). Do bond ratings agencies have any conflict of interest when they rate bonds? Clearly explain your answer.Which of the following is true of the bond market? There is no central, organize bond exchange Bonds are traded more often than stock The total dollar value of most bond trades is smaller than most stock trades Most bond trader are individual investors None of the aboveDoes governance of firms affect the prices of their bonds?Point: No. Bond prices are primarily determined by interest rate movements and therefore are not affected by the governance of firms that issue the bonds.Counter-Point: Yes. Bond prices reflect the risk of default. Firms with more effective governance may be able to reduce their default risk and thereby increase the prices of their bonds.Who is correct?
- Which of the following statements about the transparency of transactions on stock markets and bond markets is true? Multiple choice question. The stock market is more transparent than the bond market. The bond market is more transparent than the stock market. Both are equally transparent. Neither is transparent.8) Bond market indexes can be difficult to construct because A) They cannot be based on firms' market values. B) Bonds tend to trade infrequently, making price information difficult to obtain. C) There are so many different kinds of bonds. D) Prices cannot be obtained for companies that operate in emerging markets. E) Corporations are not required to disclose the details of their bond issues. Please provide accurate answer with justification.A bond issue that does NOT trade on the public market but instead is sold to a small group of investors is called a(n): O A. syndicated bond. O B. revolving line of credit. OC. syndicated bank loan. D. Eurobond. O E. prívate placement.
- If bonds payable are not callable, the issuing corporation a.can exchange them for common stock b.can repurchase them in the open market c.is more likely to repurchase them if the interest rates increase d.must get special permission from the SEC to repurchase themWhy do most bond trades occur in the over-the-counter market?Please solve this practice problem.
- corporate bonds are traded in a) an organized physical exchange through brokers b)basically privately issued closed markets c)many different locations in an over the counter fashion d) none of the above are trueWhat is a credit default swap (CDS)? A form of insurance against governments and corporations going bust. A type of stock investment used to hedge short positions. A form of government regulation promoting ESG compliance.Why might a company choose to raise money through bonds, rather than take out a note payable or issue stock? What are the advantages and disadvantages of bonds? What does it mean to issue a bond at a "premium" or at a "discount"?