Exam 12: Investing in Stocks and 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. -Most purchasers of [Treasury | municipal] bonds invest in them because of their tax-free interest.

(Short Answer)

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Question 121

Junk bonds have higher risk and similar returns to investment grade bonds.

(True/False)

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Question 122

A convertible bond is usually a

(Multiple Choice)

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Question 123

A beta of more than one would be expected of a speculative stock.

(True/False)

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Question 124

Positive aspects about bonds do not include

(Multiple Choice)

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Question 125

Advantages of common stock investments include

(Multiple Choice)

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Question 126

A bond selling below par value is selling at

(Multiple Choice)

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Question 127

One of the more appealing features of a common stock is that stock investments

(Multiple Choice)

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Question 128

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. -A potential high return on an investment will signal a [high | low] risk exposure.

(Short Answer)

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Question 129

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

(Multiple Choice)

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Question 130

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. -Preferred stockholders will receive their share of company earnings [before | after] bond interest is paid.

(Short Answer)

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Question 131

The approximate yield to maturity of a bond is greater than the stated rate of interest when

(Multiple Choice)

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Question 132

Which of the following would be a disadvantage of owning an income stock?

(Multiple Choice)

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Question 133

If you buy a zero coupon bond,you will receive no cash from the corporation until the bond matures.

(True/False)

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Question 134

When cash dividends on stock are paid,but the stockholder has these dividends automatically reinvested,what are the federal income tax implications?

(Multiple Choice)

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Question 135

An investment is acceptable if the expected rate of return is greater than the desired rate of return.

(True/False)

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Question 136

The relevant sale or invoice price of a bond to the buyer is its

(Multiple Choice)

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Question 137

Your convertible bond has a conversion ratio of 15.The current market price of the common stock is $50/share.The conversion value of this bond is

(Multiple Choice)

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Question 138

When evaluating a stock as a possible investment,one must consider

(Multiple Choice)

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Question 139

Historically,the long-term performance of stock outstrips that of bonds.

(True/False)

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Question 140

Showing 121 - 140 of 184

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. -Most purchasers of [Treasury | municipal] bonds invest in them because of their tax-free interest.

Junk bonds have higher risk and similar returns to investment grade bonds.

A convertible bond is usually a

A beta of more than one would be expected of a speculative stock.

Positive aspects about bonds do not include

Advantages of common stock investments include

A bond selling below par value is selling at

One of the more appealing features of a common stock is that stock investments

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. -A potential high return on an investment will signal a [high | low] risk exposure.

Sunshine Mining Bonds have a $1,000 face value,pay $95 annual interest,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. -Preferred stockholders will receive their share of company earnings [before | after] bond interest is paid.

The approximate yield to maturity of a bond is greater than the stated rate of interest when

Which of the following would be a disadvantage of owning an income stock?

If you buy a zero coupon bond,you will receive no cash from the corporation until the bond matures.

When cash dividends on stock are paid,but the stockholder has these dividends automatically reinvested,what are the federal income tax implications?

An investment is acceptable if the expected rate of return is greater than the desired rate of return.

The relevant sale or invoice price of a bond to the buyer is its

Your convertible bond has a conversion ratio of 15.The current market price of the common stock is $50/share.The conversion value of this bond is

When evaluating a stock as a possible investment,one must consider

Historically,the long-term performance of stock outstrips that of bonds.

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

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