Exam 13: Investing in Bonds and Other Alternatives

Jacqueline is attempting to determine the value of her preferred stock.She needs to form a fraction with the annual preferred stock dividend on the top and ________ on the bottom.

(Multiple Choice)

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Question 21

How can you improve your chances when investing in bonds?

(Essay)

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Question 22

Bonds which are very low rated,yet high yielding bonds are known as junk bonds.

(True/False)

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Question 23

What is the value of the current yield?

(Multiple Choice)

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Question 24

What are the major differences between preferred stock and common stock?

(Multiple Choice)

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Question 25

Because junk bonds carry a much higher risk of default,they also carry an interest rate ________ percent above the AAA grade long-term bonds.

(Multiple Choice)

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Question 26

Approximately two-thirds of Americans own their own homes.

(True/False)

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Question 27

Why might you consider investing in bonds?

(Multiple Choice)

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Question 28

What is the value of a $1,000 par value bond with 10 years left to maturity,a 7.5% coupon rate paid annually and a 9% YTM?

(Multiple Choice)

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(92)

Question 29

The city of Houston passed a bond issue to build a bridge over the bay.The bond was to have the interest paid by the income generated by charging drivers a toll to cross the bridge.This is an example of a ________ bond.

(Multiple Choice)

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Question 30

If you are already retired and seek additional income,then bonds as an investment choice would be wise.

(True/False)

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Question 31

The novice investor can easily make big returns investing in real estate.

(True/False)

4.8/5

(98)

Question 32

Gold,precious gems,and other collectibles always earn handsome returns.

(True/False)

4.9/5

(73)

Question 33

Suppose that you just purchased a $1,000 Treasury Inflation-Indexed Bond which carried an original interest rate of 3.375%.The consumer price index just increased by 5% increasing the par value of the bond to $1,050.What is your interest payment considering this change?

(Multiple Choice)

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(69)

Question 34

Interest payments on municipal bonds are exempt from federal taxes and state taxes as long as you live in the state in which the bonds were issued.

(True/False)

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(87)

Question 35

Make a list and check it twice to tell how to select a good bond.

(Essay)

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(75)

Question 36

Investors require a higher rate of return on bonds with higher bond ratings.

(True/False)

4.8/5

(81)

Question 37

The interest rate carried on agency bonds,such as FNMA and FHLB,is ________ the interest rate on Treasury bonds.

(Multiple Choice)

4.8/5

(80)

Question 38

Your required rate of return on company XYZ's preferred stock is 12%.Their preferred stock pays a fixed annual dividend of $4.A share of XYZ preferred is valued at

(Multiple Choice)

4.9/5

(72)

Question 39

The yield to maturity for a bond with eight years to maturity,with a face value of $1,000,pays 10 percent annual coupon and currently sells for $1,950,is 5 percent.

(True/False)

4.9/5

(70)

Question 40

Showing 21 - 40 of 149

Jacqueline is attempting to determine the value of her preferred stock.She needs to form a fraction with the annual preferred stock dividend on the top and ________ on the bottom.

How can you improve your chances when investing in bonds?

Bonds which are very low rated,yet high yielding bonds are known as junk bonds.

What is the value of the current yield?

What are the major differences between preferred stock and common stock?

Because junk bonds carry a much higher risk of default,they also carry an interest rate ________ percent above the AAA grade long-term bonds.

Approximately two-thirds of Americans own their own homes.

Why might you consider investing in bonds?

What is the value of a $1,000 par value bond with 10 years left to maturity,a 7.5% coupon rate paid annually and a 9% YTM?

The city of Houston passed a bond issue to build a bridge over the bay.The bond was to have the interest paid by the income generated by charging drivers a toll to cross the bridge.This is an example of a ________ bond.

If you are already retired and seek additional income,then bonds as an investment choice would be wise.

The novice investor can easily make big returns investing in real estate.

Gold,precious gems,and other collectibles always earn handsome returns.

Suppose that you just purchased a $1,000 Treasury Inflation-Indexed Bond which carried an original interest rate of 3.375%.The consumer price index just increased by 5% increasing the par value of the bond to $1,050.What is your interest payment considering this change?

Interest payments on municipal bonds are exempt from federal taxes and state taxes as long as you live in the state in which the bonds were issued.

Make a list and check it twice to tell how to select a good bond.

Investors require a higher rate of return on bonds with higher bond ratings.

The interest rate carried on agency bonds,such as FNMA and FHLB,is ________ the interest rate on Treasury bonds.

Your required rate of return on company XYZ's preferred stock is 12%.Their preferred stock pays a fixed annual dividend of $4.A share of XYZ preferred is valued at

The yield to maturity for a bond with eight years to maturity,with a face value of $1,000,pays 10 percent annual coupon and currently sells for $1,950,is 5 percent.

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: the Role of Open Credit

Student and Consumer Loans: the Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Investing in Stocks

Mutual Funds: an Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Eventsfitting the Pieces Together

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