1.Historically, the concepts of bonds is relatively new. t/f 2.Simply defined, b

Question

1.Historically, the concepts of bonds is relatively new. t/f

2.Simply defined, bonds represent OPM. t/f

3.What is the stated interest rate on a bond called?

4.What does a bondholder get at maturity?

5.The current yield on a bond is defined as the _______________.

6.Bonds are often referred to as ___________ __________ securities.

7.The face value of most corporate bonds is $_________.

8.Par value is sometimes called the _________ value.

9.A standardized _______ _______ _______, is based on the analysis of credit rating agencies, to help investors determine a company's credit or default risk.

10. A junk bond is normally rated BB or B by S&P and Fitch. t/f

Explanation / Answer

1) True

3) Coupon rate

4) face value or par value

5) current yield = annual interest payment/ market price

6) fixed income/debt

7) $1000

8) face value

9) credit rating

10) True

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