9. Which of the following is least likely to be a debt security? a. Government bonds b. Convertible bonds c. Collateralized debt d. Convertible preferred share e. None of the above
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- Which of the following is NOT a capital market instrument? a) Bonds b) Right Issue c) Commercial Paper d) Ordinary ShareWhich of the following is not a capital market instrument? a. Corporate stock b. Mortgages c. Corporate bonds d. Repurchase agreementa. In what ways does an MTN differ from a corporate bond?b. What derivative instrument is commonly used in creating a structured MTN?
- 1. Are putable bonds more or less convex than otherwise similar securities without a put? Why?How shall the equity component of a bonds payable issued with share warrants be valued? a.)issue price less the market value of the bonds warrants-on b.)fair value of the share warrants c.)issue price less the market value of the bonds ex-warrants d.)allocation of the issue price basing on the fair value of both bonds and share warrants12. All of the following statements regarding available-for-sale debt securities are true, except for a. premiums and discounts are amortizedb. interest revenue may be debited at the time of acquisitionc. the securities will be valued using the lower of cost or market methodd. realized gain or loss is the difference between the amortized cost of the bonds and theproceeds from their sale
- Which of the following statements is most correct? Group of answer choices A debenture is a secured bond that is backed by some or all of the firm’s fixed assets. Junk bonds typically have a lower yield to maturity relative to investment grade bonds. Subordinated debt has more default risk than senior debt. All of the statements above are correct. None of the statements above is correct.Q19 Which of the following statements are correct regarding interest component in the purchase price of bonds? (i) The fair value of a bond purchased cum-interest is the quoted price of the bond on the bond market. (ii) The fair value of a bond purchased cum-interest is the quoted price of the bond on the bond market less interest portion in the bond price (iii) The fair value of a bond purchased cum-interest is the quoted price on the bond market. (iv) The dividend component has no influence in the accounting treatment of the investment in the bonds. Select one: a. (i), (ii) and (iii) only b. (i), (ii), (iii) and (iv) c. (ii) only d. (i) and (iv) onlyWhich of the following is correct? A. Bonds maturing at a specified single date are called ordinary bonds. B. Equity securities and debt securities differ only in their effect on a company’s cash flow. C. One purpose in holding bonds as a long-term investment is to provide the investor a voting voice in the management of the issuing company. C. On bonds, the yield rate and the nominal rate of interest are always different.
- Which of the following types of debt securities protect investors against interest rate risk? a. extendible notes b. floating rate bonds c. floating rate bonds and extendible notes d. original issue deep discount bondsWhich of the following statements is correct? Subordinated debt has less default risk than senior debt. Junk bonds typically have a lower yield to maturity relative to investment grade bonds. A debenture is a unsecured bond. None of the statements are correct.1. Explain what a unsecured debt, subordinated debt, senior debt is? -is there risk in buying an unsecured debt and subsequently having the corp issue a senior debt? - Which types of debt of these would have the lowest interest rate, the highest?