. Which of the following statements is most correct? a. All else equal, long-term bonds have more interest rate risk than short-term bonds. b. All else equal, high-coupon bonds have more reinvestment rate risk than low-coupon bonds. c. All else equal, short-term bonds have more reinvestment rate risk than do long-term bonds. d. Statements a and c are correct. e. All of the statements above are correct.

6. Which of the following is true of demand bonds?a. They give the issuer the right to call the bonds at a preestablished price.b. They give the issuer the right to demand that the bondholders purchase additional bonds at a preestablished price.c. They give the bondholder the right to demand repayment prior to maturity.d. They give the bondholder the right of first refusal with respect to any additional bonds sold by the issuer. 7. Demand bonds should be reported as governmental fund liabilitiesa. if the government has not entered into a take-out agreement.b. if prevailing interest rates are higher than the interest rate on the bonds.c. if prevailing interest rates are lower than the interest rate on the bonds.d. if the government, by the time it issues its financial statements, has neither refinanced the bonds nor entered into an agreement to do so.

Historical evidence indicates that stocks Seleccione una: a. underperform bonds. b. outperform bonds. C. Are less risky than bonds. d. have the same return as bonds.

Which of the following statement is wrong? Group of answer choices a)the coupon rate of a newly issued bond is generally set equal to the required rate on bonds of equal risk. b)Since short-term interest is more volatile than the long-term interest rate, the price risk of short-term bond is more than that of the long-term bond c)The required rate of return for AAA bond is lower than that of an AA bond d)Sinking funds are provisions included in bond indentures that require companies to retire bonds on a scheduled basis prior to their final maturity.

1. Types of bonds Fixed-income securities consist of debt instruments and preferred stock. Bonds are debt securities in which a borrower promises to pay a specified interest rate and principal at a future date. Which of the following statements about Treasury bonds is the most accurate? O Treasury bonds have a very small amount of default risk, so they are not completely riskless. O Treasury bonds are completely riskless. O Treasury bonds are not completely riskless, since their prices will decline when interest rates rise. Based on the information given in the following statement, answer the questions that follow: In July 2009, Walmart sold 100 billion yen of five-year samurai bonds. Lead managers in the deal were Mizuho Securities, BNP Paribas, and Mitsubishi UFJ Securities. Who is the issuer of the bonds? O Mitsubishi UFJ Securities O BNP Paribas O Walmart What type of bonds are these? O Corporate bonds O Municipal bonds O Government bonds O O

4 Other things equal, AAA bonds will have a higher yield to maturity than BBB bonds. O TRUE O FALSE.

All other things being equal, interest rate risk for bonds with shorter terms to maturity, compared to their longer term equivalents, will be……….a) Higherb) Lowerc) Noned) Similar

Which of the following statements is TRUE regarding bonds? O A. At maturity, lenders repay a bond's par value to borrowers. O B. Ceteris paribus, bonds with higher YTMS would have higher prices. c. Borrowers purchase bonds. O D. If you anticipate a decline in market interest rates, you should purchase long-term zero-coupon bonds.

25. Which of the following statements is most correct?a. Junk bonds typically have a lower yield to maturity relative toinvestment grade bonds.b. A debenture is a secured bond that is backed by some or all of thefirm’s fixed assets.c. Subordinated debt has less default risk than senior debt.d. All of the statements above are correct.e. None of the statements above is correct.

A triple B bond (BBB) according to DBRS is rated as which of the following?   A. Investment grade (adequate credit quality) B. The highest quality on average C. Junk bond grade (very highly speculative) D. Default status grade