Exam 18: Corporate and Government Bonds

Which of the following features apply to T-bills? I.original maturities of 4,13,or 26 weeks II.minimum face value of $10,000 III.sold at a discount IV.semiannual interest payments

A Treasury bond has a yield to maturity of 5.2 percent,a time to maturity of 8 years,and a coupon rate of 7 percent.What is the bond price?

Which one of the following is a municipal bond that is secured by the income collected from a specific project?

What is the lowest accepted competitive bid in a U.S.Treasury auction called?

What is the advantage of purchasing a STRIPS over a Treasury note?

What is a bond called if it can be converted into shares of stock of a firm other than the bond issuer?

Why would an investor prefer a TIPS which offers a lower coupon rate over a comparable T-note with a higher coupon rate?

Which one of the following generally applies to municipal bonds?

Which one of the following accurately describes bond refunding?

Which one of the following is the clause which prevents a bond issuer from issuing new debt that has seniority over current debt?

A STRIPS matures in 6 years,has a face value of $17,000,and has a yield to maturity of 4.8 percent.What is the price?

What price will a noncompetitive bidder pay for a security being purchased through a U.S.Treasury auction?

Which one of the following is a taxable municipal bond used to finance a facility used by a private business?

What are the various provisions within a bond indenture that are designed to protect bondholders by restricting the actions of the issuer called?

Which one of the following statements applies to U.S.Treasury bonds?

Which of the following features would you expect a plain vanilla bond to have? I.semi-annual coupon payments II.$1,000 face value III.stated maturity date IV.multiple bonds within one issue

A Treasury bond has a 3.4 percent coupon,a quoted price of 101: 06,and 9 years to maturity.What is the yield to maturity?

A bond is currently priced at $1,076.88 and has a par value of $1,000.If the conversion ratio is 25,what is the conversion price?

A 4.5 percent,semi-annual coupon bond has a face value of $1,000 and a time to maturity of 4 years.The bonds are convertible into shares of common stock at a conversion price of $42.50.The stock price currently is $40.70.Similar,non-convertible bonds have a yield to maturity of 4.5 percent.The intrinsic value of this bond is _____ and the conversion value is _____.

Which one of the following is the difference between the price a bond dealer is willing to pay to buy and the price at which he or she is willing to sell?