Question 1

Interest rate risk is greater for long-term bonds than for short-term bonds.

Accepted Answer

A) True 
 B)False

Question 2

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 yields on municipal bonds are usually [lower | higher] than the returns available from fully taxable issues.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 3

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.
-[General obligation bonds | revenue bonds] are the least risky municipal bond category.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 4

Interest rate risk is greater for stocks than for bonds.

Accepted Answer

A) True 
 B)False

Question 5

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 you buy a bond at a premium,its yield to maturity will be [higher | lower] than the coupon yield.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 6

Sunshine Mining Bonds have a $1,000 face value,pay $95 annual interest,mature in 2004,and are currently quoted at $1,302.50.The coupon rate of interest is

Accepted Answer

A)  8.500%. 
B)  9.500%. 
C)  13.025%. 
D)  13.052%. 
E)  can't tell from the information given. 
A)  8.500%. 
B)  9.500%. 
C)  13.025%. 
D)  13.052%. 
E)  can't tell from the information given.

Question 7

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.
-Common stockholders usually receive one vote per [person | share].

Accepted Answer

The answer of Choose the word or phrase in [...

Question 8

An investor is guaranteed to make a positive return on Treasury notes and bonds.

Accepted Answer

A) True 
 B)False

Question 9

A company has a beta of 1.0;if the market goes down by 8%,the value of the company's stock will

Accepted Answer

A)  increase 8%. 
B)  decline 8%. 
C)  increase 1%. 
D)  decline 1%. 
E)  none of these. 
A)  increase 8%. 
B)  decline 8%. 
C)  increase 1%. 
D)  decline 1%. 
E)  none of these.

Question 10

Common stocks pay a guaranteed dividend each year.

Accepted Answer

A) True 
 B)False

Question 11

Recovery of principal and capital gain are elements of total return.

Accepted Answer

A) True 
 B)False

Question 12

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.
-[Market | Business] risk results from the behavior of investors that may cause security prices to fluctuate.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 13

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 issuer of your corporate bond has the right to retire it before maturity.You have a [callable | retireable] bond.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 14

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.
-[Bond | Common stock] prices would be most affected by interest rate risk.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 15

Only the federal government issues zero coupon bonds.

Accepted Answer

A) True 
 B)False

Question 16

At the time you buy a convertible bond,you will know the number of stock shares for which it can be exchanged.

Accepted Answer

A) True 
 B)False

Question 17

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.
-Stock dividends represent [taxable | nontaxable] income.

Accepted Answer

The answer of Choose the word or phrase in [...

Question 18

There is an inverse relationship between the bond prices and current interest rates.

Accepted Answer

A) True 
 B)False

Question 19

Bonds are issued by

Accepted Answer

A)  corporations, state and local and federal governments. 
B)  state and local governments and partnerships. 
C)  corporations and partnerships. 
D)  Moodys and Standard and Poor's. 
E)  none of these. 
A)  corporations, state and local and federal governments. 
B)  state and local governments and partnerships. 
C)  corporations and partnerships. 
D)  Moodys and Standard and Poor's. 
E)  none of these.

Question 20

The yields on municipal bonds are usually higher than the returns available from fully taxable issues.

Accepted Answer

A) True 
 B)False

Interest rate risk is greater for long-term bonds than for short-term bonds.

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. -[General obligation bonds | revenue bonds] are the least risky municipal bond category.

Interest rate risk is greater for stocks than for bonds.

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 you buy a bond at a premium,its yield to maturity will be [higher | lower] than the coupon yield.

Sunshine Mining Bonds have a $1,000 face value,pay $95 annual interest,mature in 2004,and are currently quoted at $1,302.50.The coupon rate of interest is

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. -Common stockholders usually receive one vote per [person | share].

An investor is guaranteed to make a positive return on Treasury notes and bonds.

A company has a beta of 1.0;if the market goes down by 8%,the value of the company's stock will

Common stocks pay a guaranteed dividend each year.

Recovery of principal and capital gain are elements of total return.

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. -[Market | Business] risk results from the behavior of investors that may cause security prices to fluctuate.

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. -[Bond | Common stock] prices would be most affected by interest rate risk.

Only the federal government issues zero coupon bonds.

At the time you buy a convertible bond,you will know the number of stock shares for which it can be exchanged.

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. -Stock dividends represent [taxable | nontaxable] income.

There is an inverse relationship between the bond prices and current interest rates.

Bonds are issued by

The yields on municipal bonds are usually higher than the returns available from fully taxable issues.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

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

Exam 12: Investing in Stocks and Bonds

Interest rate risk is greater for long-term bonds than for short-term bonds.

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. -[General obligation bonds | revenue bonds] are the least risky municipal bond category.

Interest rate risk is greater for stocks than for bonds.

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 you buy a bond at a premium,its yield to maturity will be [higher | lower] than the coupon yield.

Sunshine Mining Bonds have a $1,000 face value,pay $95 annual interest,mature in 2004,and are currently quoted at $1,302.50.The coupon rate of interest is

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. -Common stockholders usually receive one vote per [person | share].

An investor is guaranteed to make a positive return on Treasury notes and bonds.

A company has a beta of 1.0;if the market goes down by 8%,the value of the company's stock will

Common stocks pay a guaranteed dividend each year.

Recovery of principal and capital gain are elements of total return.

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. -[Bond | Common stock] prices would be most affected by interest rate risk.

Only the federal government issues zero coupon bonds.

At the time you buy a convertible bond,you will know the number of stock shares for which it can be exchanged.

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. -Stock dividends represent [taxable | nontaxable] income.

There is an inverse relationship between the bond prices and current interest rates.

Bonds are issued by

The yields on municipal bonds are usually higher than the returns available from fully taxable issues.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

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