Question 1

A convertible bond is usually a

Accepted Answer

A)  government bond. 
B)  participating bond. 
C)  debenture. 
D)  mortgage bond. 
E)  junk bond. 
A)  government bond. 
B)  participating bond. 
C)  debenture. 
D)  mortgage bond. 
E)  junk bond.

Question 2

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-The safest bond you could purchase would be a [corporate | Treasury] bond.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 3

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-The possibility that a corporation might fail is [economic | business] risk.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 4

Market risk considers the possibility that the firm may fail.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following companies is a blue chip stock

Accepted Answer

A)  General Electric (G
E)  
B)  Harley Davidson 
C)  Amazon.com 
D)  Starbucks 
E)  Krispy Kreeme 
A)  General Electric (G
E)  
B)  Harley Davidson 
C)  Amazon.com 
D)  Starbucks 
E)  Krispy Kreeme

Question 6

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-If the value of the underlying stock dropped drastically,the owner of a convertible bond [would still receive $1,000 | would receive the market value of the stock] at maturity.

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 7

Cash dividends on common stock are most often paid

Accepted Answer

A)  weekly 
B)  monthly 
C)  quarterly 
D)  semi-annually 
E)  annually 
A)  weekly 
B)  monthly 
C)  quarterly 
D)  semi-annually 
E)  annually

Question 8

If the current price of an investment increases,what affect does the price increase have on approximate yield

Accepted Answer

A)  moderately increase yield 
B)  decrease yield 
C)  will not affect the yield 
D)  drastically increase yield 
E)  none of the above 
A)  moderately increase yield 
B)  decrease yield 
C)  will not affect the yield 
D)  drastically increase yield 
E)  none of the above

Question 9

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-Annual dividends per share divided by market price per share equals [total yield | dividend yield].

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 10

____ stocks would generally be considered appropriate for investors who fully understand the risks involved and can tolerate such risk exposure.

Accepted Answer

A)  Large-cap 
B)  Mid-cap 
C)  Penny 
D)  Small-cap 
E)  B and d 
A)  Large-cap 
B)  Mid-cap 
C)  Penny 
D)  Small-cap 
E)  B and d

Question 11

A bond with a market value of $1,000 and a coupon rate of 7.0% has a 7.0% current yield.

Accepted Answer

A) True 
 B)False

Question 12

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement.
-Dividend income is taxed [as ordinary income | at capital gains rates].

Accepted Answer

The answer of INSTRUCTIONS: Choose the word or phrase in...

Question 13

Treasury inflation-indexed bonds (TIPS)were first issued by the federal government in which year?

Accepted Answer

A)  1776 
B)  1890 
C)  1975 
D)  1997 
E)  Tips are issued local municipalities,not the federal government 
A)  1776 
B)  1890 
C)  1975 
D)  1997 
E)  Tips are issued local municipalities,not the federal government

Question 14

Common stock owners must receive dividends before preferred stockholders.

Accepted Answer

A) True 
 B)False

Question 15

The approximate yield to maturity when the average income is $1.00,the average capital gain is $5.00,the average investment is $26.00,and the investment is held for 10 years is

Accepted Answer

A)  11 percent. 
B)  23 percent. 
C)  27 percent. 
D)  33 percent. 
E)  50 percent. 
A)  11 percent. 
B)  23 percent. 
C)  27 percent. 
D)  33 percent. 
E)  50 percent.

A convertible bond is usually a

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -The safest bond you could purchase would be a [corporate | Treasury] bond.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -The possibility that a corporation might fail is [economic | business] risk.

Market risk considers the possibility that the firm may fail.

Which of the following companies is a blue chip stock

Cash dividends on common stock are most often paid

If the current price of an investment increases,what affect does the price increase have on approximate yield

____ stocks would generally be considered appropriate for investors who fully understand the risks involved and can tolerate such risk exposure.

A bond with a market value of $1,000 and a coupon rate of 7.0% has a 7.0% current yield.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -Dividend income is taxed [as ordinary income | at capital gains rates].

Treasury inflation-indexed bonds (TIPS)were first issued by the federal government in which year?

Common stock owners must receive dividends before preferred stockholders.

The approximate yield to maturity when the average income is $1.00,the average capital gain is $5.00,the average investment is $26.00,and the investment is held for 10 years is

Understanding the Financial Planning Process

Your Financial Statements and Plans

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

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Exam 12: Investing in Stocks and Bonds

A convertible bond is usually a

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -The safest bond you could purchase would be a [corporate | Treasury] bond.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -The possibility that a corporation might fail is [economic | business] risk.

Market risk considers the possibility that the firm may fail.

Which of the following companies is a blue chip stock

Cash dividends on common stock are most often paid

If the current price of an investment increases,what affect does the price increase have on approximate yield

____ stocks would generally be considered appropriate for investors who fully understand the risks involved and can tolerate such risk exposure.

A bond with a market value of $1,000 and a coupon rate of 7.0% has a 7.0% current yield.

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.Select A for the first item,B for the second item,and C if neither item will correctly complete the statement. -Dividend income is taxed [as ordinary income | at capital gains rates].

Treasury inflation-indexed bonds (TIPS)were first issued by the federal government in which year?

Common stock owners must receive dividends before preferred stockholders.

The approximate yield to maturity when the average income is $1.00,the average capital gain is $5.00,the average investment is $26.00,and the investment is held for 10 years is

Understanding the Financial Planning Process

Your Financial Statements and Plans

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Mutual Funds

Planning for Retirement

Preserving Your Estate

Filters