Question 1

A Puppy Pet Services $1,000 bond has a 7.5% coupon rate, matures in 2020, and is currently quoted at $820. The current yield is:

Accepted Answer

A) 6.15%. 
B) 7.50 %. 
C) 9.15 %. 
D) 10.27 %. 
E) 11.43 %. 
A) 6.15%. 
B) 7.50 %. 
C) 9.15 %. 
D) 10.27 %. 
E) 11.43 %.

Question 2

The advantages of a dividend reinvestment plan (DRP)may include:

Accepted Answer

A) stock sold at a discount. 
B) a guaranteed rate of return. 
C) tax advantages. 
D) a convertibility option. 
E) repayment of the principal. 
A) stock sold at a discount. 
B) a guaranteed rate of return. 
C) tax advantages. 
D) a convertibility option. 
E) repayment of the principal.

Question 3

The callable feature of a bond protects the issuer when market interest rates are falling.

Accepted Answer

A) True 
 B)False

Question 4

The _____ of a stock reflects stockholders' confidence.

Accepted Answer

A) par value 
B) book value 
C) earnings per share 
D) price\earnings ratio 
E) dividend yield 
A) par value 
B) book value 
C) earnings per share 
D) price\earnings ratio 
E) dividend yield

Question 5

Which of the following types of bonds is unsecured?

Accepted Answer

A) Mortgage bonds 
B) Equipment trust certificates 
C) Debenture bonds 
D) Agency bonds 
E) Treasury bonds 
A) Mortgage bonds 
B) Equipment trust certificates 
C) Debenture bonds 
D) Agency bonds 
E) Treasury bonds

Question 6

Capital gains are paid at specified times, e.g., quarterly or semiannually.

Accepted Answer

A) True 
 B)False

Question 7

Positive aspects about bonds include:

Accepted Answer

A) high dividend receipts. 
B) few diversification properties. 
C) residual ownership. 
D) potential capital gains. 
E) high returns as compared to equity. 
A) high dividend receipts. 
B) few diversification properties. 
C) residual ownership. 
D) potential capital gains. 
E) high returns as compared to equity.

Question 8

An investor receives a return from an investment due to:

Accepted Answer

A) recurring deposits. 
B) capital gains on the sale of an investment. 
C) asset allocation among different asset classes. 
D) rebalancing by buying more equities. 
E) diversification among or within asset classes. 
A) recurring deposits. 
B) capital gains on the sale of an investment. 
C) asset allocation among different asset classes. 
D) rebalancing by buying more equities. 
E) diversification among or within asset classes.

Question 9

American Depositary Receipts are denominated in the currencies of the foreign countries where the corporations issuing these ADRs are registered.

Accepted Answer

A) True 
 B)False

A Puppy Pet Services $1,000 bond has a 7.5% coupon rate, matures in 2020, and is currently quoted at $820. The current yield is:

The advantages of a dividend reinvestment plan (DRP)may include:

The callable feature of a bond protects the issuer when market interest rates are falling.

The _____ of a stock reflects stockholders' confidence.

Which of the following types of bonds is unsecured?

Capital gains are paid at specified times, e.g., quarterly or semiannually.

Positive aspects about bonds include:

An investor receives a return from an investment due to:

American Depositary Receipts are denominated in the currencies of the foreign countries where the corporations issuing these ADRs are registered.

Understanding the Financial 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, Etfs, and Real Estate

Planning for Retirement

Preserving Your Estate

Filters

Exam 12: Investing in Stocks and Bonds

A Puppy Pet Services $1,000 bond has a 7.5% coupon rate, matures in 2020, and is currently quoted at $820. The current yield is:

The advantages of a dividend reinvestment plan (DRP)may include:

The callable feature of a bond protects the issuer when market interest rates are falling.

The _____ of a stock reflects stockholders' confidence.

Which of the following types of bonds is unsecured?

Capital gains are paid at specified times, e.g., quarterly or semiannually.

Positive aspects about bonds include:

An investor receives a return from an investment due to:

American Depositary Receipts are denominated in the currencies of the foreign countries where the corporations issuing these ADRs are registered.

Understanding the Financial 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, Etfs, and Real Estate

Planning for Retirement

Preserving Your Estate

Filters