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- A debenture is ________. Group of answer choices A. a bond with assets such as land to back their word that they will pay it back B. the interest paid on a bond C. a type of bond that can be sold back to the issuing company whenever the bondholder wishes D. a bond with only the company's word that they will pay it backWhich of the following statements concerning bonds is FALSE? A. Bonds can be issued either at par, premium, or discount. B. Bonds interest is tax deductible. C. Bondholders have voting rights. D. Bonds are usually considered to be a long term liability.A debenture is ________.A. the interest paid on a bondB. a type of bond that can be sold back to the issuing company whenever the bondholder wishesC. a bond with only the company’s word that they will pay it backD. a bond with assets such as land to back their word that they will pay it back
- Bond A is a municipal bond and Bond B is a corporate bond. Which bond should have the lower yield to maturity? Select one: a. B b. A c. A=BBond A is a municipal bond and Bond B is a corporate bond. If you pay a very high tax rate, which bond do you prefer? Select one: a. B b. A c. A=BWhich type of bond has interest payments that are exempt from federal income taxes? A. Corporate bonds B. Certificates of deposit C. Municipal bonds D. Treasury bonds
- Based on historical data, which is more likely to default, a AA-rated corporate bond or a AA-rated municipal bond? Municipal bond. Corporate bond. They are approximately equally likely to default.A legal document that details the rights of bondholders and the issuer is called . If the legal document just described includes a sinking fund provision, is the bond considered to have more or less default risk, all else being equal? More default risk Less default risk You can distinguish the various types of bonds by their terms of contract, pledge of collateral, and so on. Identify the type of bond based on each description given in the table that follows: Description Type of Bond These bonds are backed by real estate holdings and equipment, and if a company goes bankrupt, the collateral can be sold off to compensate for the default. These bonds, more so than other collateralized securities, have prior claims over assets. These bonds are not backed by any physical collateral. They are backed by the reputation and creditworthiness of the issuing company. These bonds are considered the riskiest of all corporate bonds and thus…Which of the following is true regarding a bond? O The issuance must be approved by the board of directors. O The terms are set forth in a legal document called a bond indenture. O The contractual interest rate is also referred to as the stated rate. O All of the answer choices are correct.
- Which one of the following statements is correct concerning bond classifications? Select one: a. A mortgage security is a bond issued solely by a home builder. b. A note is a bond which has an original maturity date longer than 10 years. c. A debenture is a long-term bond secured by the fixed assets of a firm. d. A callable bond can be repurchased by the issuer prior to the initial maturity date. e. A subordinated bond receives preferential treatment over all other bonds in a bankruptcy.1. You are comparing the two bonds below. Please note differences and what impact each would have on how the bonds should trade relative to each other in the secondary market. Bond A: Home Depot Bond B: LowesThe largest type of municple bonds outstanding is: A. revenue bonds. B. Industrial development bonds. C. Treasurry strips. D. Convertable bonds. E. General obligation bonds.