earn a high rating from the bond rating agencies, a company would want to have: (check all that apply) A high quick ratio A high profitability ratio A low debt-to-equity ratio A low EBIT to interest coverage ratio

The time value of money is used in calculating bond prices because: Group of answer choices A - The company might choose to repay the bonds prior to their maturity date B - Bond investors receive future payments and purchase bonds with current dollars C - The amount to be repaid at maturity will change as market rates change D - Cash interest payments to bondholders will change as market rates change

Give typing answer with explanation and conclusion  Question 16:   Which of the following statements about convexity are true?   I. Convexity accounts for the curvilinear function of bond rates   II. A bond with a very low coupon and a long maturity will have low convexity III. A bond investor would seek to avoid bonds with high convexity.   IV. Convexity is defined as the rate of change of the slope of the price/yield curve   V. There is an inverse relationship between maturity and convexity   a. I.   b. II. III. IV.   c. I. IV.   d. II. IV. V.   e. I. II. IV. V.

Can I use the yield to maturity (YTM) on a bond issued by the company as the cost of debt?     A Yes, you can use the YTM B No, you cannot use the YTM C Only if the bond is liquid and has not special feature embedded in it D There is not enough information to answer this problem

The higher the credit rating of a bond then the Select one: Lower the default risk and the lower the yield to maturity Lower the default risk and the higher the yield to maturity Higher the default risk and the lower the yield to maturity Higher the default risk and the higher the yield to maturity O

Select the correct statement: The value of a premium bond will fall over time, if cost of debt (rd) decreases The value of a discount bond will fall over time, if cost of debt (rd) does not change The value of a discount bond will increase ove time, if cost of debt (rd) does not change The value of a premium bond will increase over time, if cost of debt (rd) does not change

Choose from liquidity premium, taxability premium, default risk premium, maturity premium. 1.For a long term bond, bondholders demand a higher yield as compensation is called?2.When a bond has poor credit rating, bondholders demand a higher yield as compensation is called?3.When a bond has less frequent trading, bondholders demand a higher yield as compensation is called?

To provide credit rating in the bond market, Bonds are given rankings according to their investment quality, i.e., investment grade and non-investment grade. Which of the following is a measure of the highest investment grade bond? ABC Bbb AAA Ccc- None of the above.

All else equal, the expected return will be lowest for which of the following bonds? Selected Answer: A CC rated bond. Answers: An A rated bond. A CC rated bond. bonds are fixed income securities; they all earn the same return. A AAA rated bond.