2. Bond A and Bond B have identical characteristics except that Bond A has a higher interest rate. Which bond has a higher credit risk? 3. Bond A and Bond B are identical except Bond B has a longer term. Therefore, we expect Bond _____ to pay a higher rate of interest. 4.Bonds issued by state and local governments are called _____ bonds. Bonds issued by financially shaky corporations are called _____ bonds. Of these two, which type of bond usually pays a relatively higher interest rate?

Explain why corporate bonds always yield more than Treasury bonds and whyBBB-rated bonds always yield more than AA-rated bonds.

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

The company's bank won't lend it any more money than it already has, and investment bankers have said that debentures are out of the question. The treasurer has asked you to do some research and suggest a few ways in which bonds might be made attractive enough to allow the company to borrow. Explain how to secure the bonds with owned assets in great detial. In what ways does it make the bonds more attractive to allow  the company to borrow?

Which of the following statement is true?  Interest rates on Municipal bonds are on average   Question 24 options:   lower than those of the U.S. government bonds with the same terms to maturity because municipal bonds are not as liquid as the U.S. government bonds .   higher than those of the U.S. government bonds with the same terms to maturity because municipal bonds are not as risky as the U.S. government bonds .   lower than those of the U.S. government bonds with the same terms to maturity because municipal bonds are not as risky as the U.S. government bonds .   lower than those of the U.S. government bonds with the same terms to maturity because many local business prefers municipal bonds.   higher than those of the U.S. government bonds with the same terms to maturity because municipal bonds are not as liquid as the U.S. government bonds .

Which of the following statements about are true about municipal bonds? (Select all that apply: 3 of the answers below are correct.) O Municipal bonds are typically backed by a pool of residential mortgages O Intrest payments dy municipal bonds are exempt from federal income täxes and most state & local income taxes O Municipal bonds can typically be exchanged for sstock in the underlying issuer at the discretion of the bond holder. O A municipal bond sold to finance a specific revenue-generting project and backed by cash flows from that project are called "Revenue Bonds". O A municipal bond backed by the full faith & credit of the issuer is called a "General Obligtion Bond". O There is NO secondary market for municipal bonds. O municipal bonds are generally considered to be low risk because they are insured by the FDIC

Which of the following statements is NOT true? A. Debt contracts tend to impose more restrictions on the actions of the borrower than the lender   B. Larger corporations have easier access to the securities market   C. The financial sector is one of the least regulated industries in the US economy   D. Collateral is used to secure debt contracts

Bonds are like loans the issuers get from investors. Just as your credit worthiness is evaluated when you apply for a loan, the credit worthiness of the bond also needs to be evaluated. To do this, independent agencies have created a rating system. To help investors evaluate bonds, private rating agencies such as Moody’s and Standard & Poor’s assign grades to designate a bond’s quality. Which of the following statements regarding the rating system are correct? Check all that apply. Once a bond receives a rating, it cannot be changed.   A bond rated Ba by Moody’s is comparable to a bond rated BB by Standard & Poor’s.   Different rating systems are used for corporate versus municipal bonds.   The average yields on Aaa bonds are generally lower than the average yields on Baa bonds.   The rating C signifies a lower risk of default than a B rating.     The following chart shows the distribution of Moody’s ratings for municipal bonds between 1970 and…

1. How would you define corporatebonds? Explain in your own wordswhat Bonds issued at Par, at aDiscount, and at a Premium are.2. How would you explain thedifference between bank loans andissuing corporate bonds? In youropinion, which of the fundingmethods is more attractive to acompany?

Briefly describe the differences between inflation and Deflation. Briefly describe what Municipal Bonds are as compared to General Obligation Bonds.