Capital markets trade securities that: 1. mature in more than one year. II. has relatively higher risk of capital loss. III. must be guaranteed by the federal governm A. I only. B. II only. C. I and II only

Capital markets trade securities that: 1. mature in more than one year. II. has relatively higher risk of capital loss. III. must be guaranteed by the federal governm A. I only. B. II only. C. I and II only

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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Question

Capital markets trade securities that:
1. mature in more than one year. <
II. has relatively higher risk of capital loss.
III. must be guaranteed by the federal government.
A. I only.
B. II only.
C. I and II only
D. I and III only
H

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The debt component of convertible bonds issued using IFRS is the a. present value of the future cash flows at the market interest rate b. present value of the future cash flows at the stated interest rate c. market value of similar bonds without a conversion feature d. same as the calculation for GAAP
22. Investments in debt securities made to generate trading gains are classified as: Multiple Choice trading securities. available-for-sale securities. minority securities. held to maturity securities.
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25. Help me selecting the right answer. Thank you
The secondary market is the market in which: Select one: a. The sale proceeds of a trade flow to the issuer of the security. b. Publicly held firms issue new shares of stock. O c. One shareholder sells securi ties to another shareholder. d. Only bonds or other debt securities are sold.
Please explain in detail
An asset ( Set that is purchased with the expectation that it will pro or appreciate at s Tuture. Bond sit Investment 2. Hise it in stocke an organization that brings together money from various people and invests ke bonus or omer assets. Hurance ComSION le B. Deposit PSIH Market AAA e liquidity. AV B: 4. It is a form of security that indicates the holder has proportionate ownership in the issuing corporation. A. Bond C. Deposit D. Investment B. Stock 5. An income based on the outstanding principal and current interest rate. A. Active income C. Passive income B. Interest income D. Dividend income 6. It is a fixed-income instrument that signifies a loan made by an investor to a borrower (typically corporate or government). A. Bond B. Stock C. Deposit D. Investment 7. These investments are impractical to invest directly considering storage, transportation, and insurance costs involved. A. Currency C. Commodities D. Investment B. Stock 8. A risk management technique that combines a wide…
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.
Capital markets: a.apply only to bonds. b.apply only to stock. c.involve long-term investments. d.None of the above.
question 53
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 fixed-income security is defined as. A) a debt obligation that pays a fixed rate of return for a one-year period of time. B) common or preferred stock that pays a fixed annual dividend C) a long-term debt obligation that pays scheduled fixed payments. D) long-term debt issued solely by a federal or state government E) any security originally issued as either debt or equity that pays a fixed, pre-se p et payment

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