1. When issuing commercial paper, it is important for a company to have: A: a party to act as an acceptor and guarantee payment B: collateral to attach to the issue C: a well-established reputation in the markets 2. Which type of financial claim is not satisfied until those of the creditors holding certain senior debts have been fully satisfied? A: mortgage bonds B: unsecured notes C: subordinated debentures 3. Using the expectations theory of term structure, a negatively sloped yield curve indicates that investors expect: A: falling long-term interest rates B: rising long-term interest rates C: falling short-term interest rates
1. When issuing commercial paper, it is important for a company to have: A: a party to act as an acceptor and guarantee payment B: collateral to attach to the issue C: a well-established reputation in the markets 2. Which type of financial claim is not satisfied until those of the creditors holding certain senior debts have been fully satisfied? A: mortgage bonds B: unsecured notes C: subordinated debentures 3. Using the expectations theory of term structure, a negatively sloped yield curve indicates that investors expect: A: falling long-term interest rates B: rising long-term interest rates C: falling short-term interest rates
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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1. When issuing commercial paper, it is important for a company to have:
A: a party to act as an acceptor and guarantee payment
B: collateral to attach to the issue
C: a well-established reputation in the markets
2. Which type of financial claim is not satisfied until those of the creditors holding certain senior debts have been fully satisfied?
A: mortgage bonds
B: unsecured notes
C: subordinated debentures
3. Using the expectations theory of term structure, a negatively sloped yield curve indicates that investors expect:
A: falling long-term interest rates
B: rising long-term interest rates
C: falling short-term interest rates
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