公司理财(英文版)题库5

1、Difficultylevel:EasyDifficultylevel:Easya.coupon.a.coupon.CHAPTER5InterestRateandBondValuationMultipleChoiceQuestionsDEFINITIONSCOUPONa1.Thestatedinterestpayment,indollars,madeonabondeachperiodiscalledthebonds:coupon.facevalue.maturity.yieldtomaturity.couponrate.FACEVALUEb2.Theprincipalamountofabond

2、thatisrepaidattheendoftheloantermiscalledthebonds:coupon.facevalue.maturity.yieldtomaturity.couponrate.Difficultylevel:EasyMATURITYc3.Thespecifieddateonwhichtheprincipalamountofabondisrepaidiscalledthebonds:facevalue.c.maturity.d.yieldtomaturity.e.couponrate.Difficultylevel:EasyYIELDTOMATURITYd4.The

3、rateofreturnrequiredbyinvestorsinthemarketforowningabondiscalledthe:a.coupon.b.facevalue.c.maturity.d.yieldtomaturity.e.couponrate.Difficultylevel:EasyDifficultylevel:EasyDifficultylevel:EasyDifficultylevel:Easya.parvaluea.parvaluea.parvaluea.parvaluetsfacevalueissellsfortsfacevalueissellsfor$1,000i

4、nCOUPONRATEe5.Theannualcouponofabonddividedbycalledthebonds:coupon.facevalue.maturity.yieldtomaturity.couponrate.Difficultylevel:EasyPARBONDSa6.Abondwithafacevalueof$1,000thatthemarketiscalledabond.Difficultylevel:EasyDifficultylevel:Easya.preferredstocka.preferredstockdiscountpremiumzerocouponfloat

5、ingrateDifficultylevel:EasyDISCOUNTBONDSb7.Abondwithafacevalueof$1,000thatsellsforlessthan$1,000inthemarketiscalledabond.pardiscountpremiumzerocouponfloatingratePREMIUMBONDSc8.Abondwithafacevalueof$1,000thatsellsformorethan$1,000inthemarketiscalledabond.pardiscountpremiumzerocouponfloatingrateDiffic

6、ultylevel:EasyUNFUNDEDDEBTd9.Theunfundeddebtofafirmisgenerallyunderstoodtomeanthefirms:debtsthatmatureinmorethanoneyeardebentures.debtsthatmatureinlessthanoneyear.secureddebt.Difficultylevel:EasyINDENTUREa10.Thewritten,legallybindingagreementbetweenthecorporateborrowerandthelenderdetailingthetermsof

7、abondissueiscalledthe:indenture.covenant.termsoftrade.form5140.callprovisionDifficultylevel:EasyDifficultylevel:EasyDifficultylevel:EasyDifficultylevel:EasyREGISTEREDBONDSb11.Theformofbondissueinwhichtheregistrarofthecompanyrecordsownershipofeachbond,withrelevantpaymentsmadedirectlytotheownerofrecor

8、d,iscalledtheform.new-issueregisteredbearerdebenturecollateralDifficultylevel:MediumBEARERBONDSc12.Theformofbondissueinwhichthebondisissuedwithoutrecordoftheownersname,withrelevantpaymentsmadedirectlytowhoeverphysicallyholdsthebond,iscalledtheform.new-issueregisteredbearerdebenturecollateralDifficul

9、tylevel:EasyDEBENTURESe13.Theunsecureddebtsofafirmwithmaturitiesgreaterthan10yearsaremostliterallycalled:unfundedliabilities.sinkingfundsbonds.notes.debentures.Difficultylevel:EasyNOTESd14.Theunsecureddebtsofafirmwithmaturitieslessthan10yearsaremostliterallycalled:unfundedliabilities.sinkingfunds.bo

10、nds.notes.debentures.Difficultylevel:EasySINKINGFUNDa15.Anaccountmanagedbythebondtrusteeforearlybondredemptionpaymentsiscalleda:sinkingfund.collateralpaymentaccount.deedintrustaccount.callprovision.parvaluefund.Difficultylevel:EasyCALLPROVISIONb16.Anagreementgivingthebondissuertheoptiontorepurchaset

11、hebondataspecifiedpricepriortomaturityistheprovision.sinkingfundcallsenioritycollateraltrusteeDifficultylevel:EasyCALLPREMIUMc17.Theamountbywhichthecallpriceexceedsthebondsparvalueisthe:couponrate.redemptionvalue.callpremium.original-issuediscount.callrate.Difficultylevel:EasySENIORITYe18.Intheevent

12、ofdefault,debtholdersmustgivepreferencetomoredebtholdersinthepriorityofrepaymentdistributions.short-term;long-termlong-term;short-termsenior;juniorsenior;subordinatedsubordinated;seniorDifficultylevel:MediumDEFERREDCALLPROVISIONd19.Adeferredcallprovisionreferstothe:openmarketpriceofacallablebondonac

13、hibitionofacompanyfromredeemingcallablebondspriortoacertaindate.amountbywhichthecallpriceforacallablebondexceedsitsparvalue.Difficultylevel:EasyTREASURYBONDSa20.The

14、long-termbondsissuedbytheUnitedStatesgovernmentarecalledbonds.Treasurymunicipalfloating-ratejunkzerocouponDifficultylevel:EasyMUNICIPALBONDSb21.Thelong-termbondsissuedbystateandlocalgovernmentsintheUnitedStatesarecalledbonds.Treasurymunicipalfloating-ratejunkzerocouponDifficultylevel:EasyZEROCOUPONB

15、ONDSe22.AbondthatmakesnocouponpaymentsandisinitiallypricedatadeepdiscountiscalledabondTreasurymunicipalfloating-ratejunkzerocouponDifficultylevel:EasyFLOATING-RATEBONDSc23.Abondthatpaysavariableamountofcouponinterestovertimeiscalledabond.Treasurymunicipalfloating-ratejunkzerocouponDifficultylevel:Ea

16、syPROTECTIVECOVENANTe24.Partsoftheindenturelimitingcertainactionsthatmightbetakenduringthetermoftheloantoprotecttheinterestsofthelenderarecalled:tectivecovenants.Difficultylevel:EasyCONVERTIBLEBONDSd25.Abondwhich,atthe

17、electionoftheholder,canbeswappedforafixednumberofsharesofcommonstockatanytimepriortothebondsmaturityiscalledabond.zerocouponcallableputableconvertiblewarrantDifficultylevel:MediumPRICETRANSPARENCYa26.Afinancialmarketisifitispossibletoeasilyobserveitspricesandtradingvolume.transparentopenorderedinequ

18、ilibriumchaoticDifficultylevel:MediumCURRENTYIELDb27.Theannualcouponpaymentofabonddividedbyitsmarketpriceiscalledthe:couponrate.currentyield.yieldtomaturity.bid-askspread.capitalgainsyield.Difficultylevel:EasyTIPBONDSb28.ATIPbondsinterestrateislinkedto:income.inflation.liquidity.maturityofthe30yearg

19、overnmentbond.corporatetaxrates.Difficultylevel:MediumPUTBONDa29.Abondthatallowstheholdertoforcetheissuertobuybackbondsatastatedrateiscalleda:putbondcallbond.guaranteedbond.TIPbond.noneoftheabove.Difficultylevel:MediumNOMINALRATESe30.Interestratesorratesofreturnoninvestmentsthathavenotbeenadjustedfo

20、rtheeffectsofinflationarecalledrates.couponstrippedeffectiverealnominalDifficultylevel:MediumREALRATESa31.Interestratesorratesofreturnoninvestmentsthathavebeenadjustedfortheeffectsofinflationarecalledrates.realnominaleffectivestrippedcouponDifficultylevel:MediumFISHEREFFECTb32.Therelationshipbetween

21、nominalrates,realrates,andinflationisknownasthe:MillerandModiglianitheorem.Fishereffect.Gerestrateriskpremium.Difficultylevel:MediumTERMSTRUCTUREOFINTERESTRATESc33.Therelationshipbetweennominalinterestratesondefault-free,purediscountsecuritiesandtheti

22、metomaturityiscalledthe:liquidityeffect.FerestrateriskpremiumDifficultylevel:MediumINFLATIONPREMIUMd34.Thepremiumisthatportionofanominalinterestrateorbondyieldthatrepresentscompensationforexpectedfutureoverallpriceappreciation.defaultriskt

23、axabilityliquidityinflationinterestrateriskDifficultylevel:EasyDEFAULTRISKPREMIUMa35.Thepremiumisthatportionofanominalinterestrateorbondyieldthatrepresentscompensationforthepossibilityofnonpaymentbythebondissuer.defaultrisktaxabilityliquidityinflationinterestrateriskDifficultylevel:EasyCONCEPTSBONDF

24、EATURESd36.Abondwitha7%couponthatpaysinterestsemi-annuallyandispricedatparwillhaveamarketpriceofandinterestpaymentsintheamountofeach.$1,007;$70$1,070;$35$1,070;$70$1,000;$35$1,000;$70Difficultylevel:MediumBONDPRICESANDYIELDSe37.Allelseconstant,abondwillsellatwhentheyieldtomaturityisthecouponrate.apr

25、emium;higherthanapremium;equaltoatpar;higherthanatpar;lessthanadiscount;higherthanDifficultylevel:MediumBONDPRICESANDYIELDSd38.Allelseconstant,acouponbondthatissellingatapremium,musthave:acouponratethatisequaltotheyieldtomaturity.amarketpricethatislessthanparvalue.semi-annualinterestpayments.ayieldt

26、omaturitythatislessthanthecouponrateacouponratethatislessthantheyieldtomaturityDifficultylevel:EasyBONDPRICESc39.Themarketpriceofabondisequaltothepresentvalueofthe:facevalueminusthepresentvalueoftheannuitypayments.annuitypaymentsplusthefuturevalueofthefaceamount.facevalueplusthepresentvalueoftheannu

27、itypayments.facevalueplusthefuturevalueoftheannuitypayments.annuitypaymentsminusthefacevalueofthebond.Difficultylevel:EasyBONDPRICESa40.Astheyieldtomaturityincreases,the:amounttheinvestoriswillingtopaytobuyabonddecreases.longerthetimetomaturitylowerthecouponratedesiredbythatinvestor.higherthepriceth

28、einvestorofferstobuyabond.lowertherateofreturndesiredbytheinvestor.Difficultylevel:EasySEMIANNNUALBONDSe41.AmericanFortunesispreparingabondofferingwithan8%couponrate.Thebondswillberepaidin10years.Thecompanyplanstoissuethebondsatparvalueandpayinterestsemiannually.Giventhis,whichofthefollowingstatemen

29、tsarecorrectI.Theinitialsellingpriceofeachbondwillbe$1,000.II.Afterthebondshavebeenoutstandingfor1year,youshoulduse9asthenumberofcompoundingperiodswhencalculatingthemarketvalueofthebond.Eachinterestpaymentperbondwillbe$40IV.Theyieldtomaturitywhenthebondsarefirstissuedis8%IandIIonlyIIandIIIonlyII,III

30、,andIVonlyI,II,andIIIonlyI,III,andIVonlyDifficultylevel:MediumSEMIANNUALBONDSANDEFFECTIVEANNUALRATE6%arerated6%arerateequalto3%.greaterthan3%butlessthan4%equalto6%greaterthan6%butlessthan7%.equalto12%.Difficultylevel:MediumINTERESTRATERISKd43.Whichoneofthefollowingstatementsiscorrectconcerningintere

31、strateriskasitrelatestobonds,allelseequalTheshorterthetimetomaturity,thegreatertheinterestraterisk.Thehigherthecouponrate,thegreatertheinterestraterisk.Forabondsellingatparvalue,thereisnointerestraterisk.Thegreaterthenumberofsemiannualinterestpayments,thegreatertheinterestraterisk.Thelowertheamounto

32、feachinterestpayment,thelowertheinterestraterisk.Difficultylevel:MediumINTERESTRATERISKe44.Whichoneofthefollowingbondshasthegreatestinterestraterisk5-year;9%coupon5-year;7%coupon7-year;7%coupon9-year;9%coupon9-year;7%couponDifficultylevel:MediumINTERESTRATERISKb45.Interestrateriskasthetimetomaturity

33、increases.increasesatanincreasingrateincreasesatadecreasingrateincreasesataconstantratedecreasesatanincreasingratedecreasesatadecreasingrateDifficultylevel:MediumINTERESTRATERISKc46.Youownabondthathasa7%couponandmaturesin12yearsYoupurchasedthisbondatparvaluewhenitwasoriginallyissued.Ifthecurrentmark

34、etrateforthistypeandqualityofbondis%,thenyouwouldexpect:thebondissuertoincreasetheamountofeachinterestpaymentonthesebonds.theyieldtomaturitytoremainconstantduetothefixedcouponrate.torealizeacapitallossifyousoldthebondatthemarketpricetoday.todaysmarketpricetoexceedthefacevalueofthebond.thecurrentyiel

35、dtodaytobelessthan7%.Difficultylevel:MediumINTERESTRATERISKb47.Abrandwithsemi-annualinterestpayments,allelseequal,wouldbepricedthanonewithannualinterestpayments.higherlowerthesameitisimpossibletotelleitherhigherorthesameDifficultylevel:MediumYIELDTOMATURITYANDCURRENTYIELDincreasese48.Allelseconstant

36、,asthemarketpriceofabondincreasesthecurrentyieldandtheyieldtomaturityincreases;increases.increases;decreases.remainsconstant;increases.decreases;increases.decreases;decreases.Difficultylevel:MediumDifficultylevel:MediumDifficultylevel:MediumDifficultylevel:MediumBONDFEATURESd49.Whichofthefollowingst

37、atementsconcerningbondfeaturesis(are)correctBondholdersgenerallyhavevotingpowerinacorporation.Bondinterestistax-deductibleasabusinessexpense.Therepaymentofthebondprincipleistax-deductible.Failuretopayeithertheinterestpaymentsorthebondprincipleasagreedcancauseafirmtogointobankruptcy.IIonlyIandIIonlyI

38、IIandIVonlyIIandIVonlyII,III,andIVonlyBONDINDENTUREd50.WhichofthefollowingitemsaregenerallyincludedinabondindentureI.callprovisionsII.securitydescriptioncurrentyieldIV.protectivecovenantsa.andIIonlyb.IIandIVonlyc.II,III,andIVonlyd.I,II,andIVonlye.I,II,III,andIVa.andIIonlyb.IIandIVonlyc.II,III,andIVo

39、nlyd.I,II,andIVonlye.I,II,III,andIVBONDCLASSIFICATIONSe51.WhichoneofthefollowingstatementsiscorrectconcerningbondclassificationsAdebentureisalong-termbondsecuredbythefixedassetsofafirm.Amortgagesecurityisabondissuedsolelybyahomebuilder.Anoteisabondwhichhasanoriginalmaturitydatelongerthan10years.Asub

40、ordinatedbondreceivespreferentialtreatmentoverallotherbondsinabankruptcy.Acallablebondcanberepurchasedbytheissuerpriortotheinitialmaturitydate.CALLABLEBONDSb52.Callablebondsgenerally:allowthebondholdertodecidewhenthebondistobecalledareassociatedwithsinkingfunds.permittheissuertorepurchasethebondsata

41、discount.arecalledwithinthefirstcoupleofyearsafterissuance.arerequiredtohaveadeferredcallprovisioniftheyhavea“make-whole”callprovision.Difficultylevel:MediumPROTECTIVECOVENANTSc53.Whichofthefollowingisa(are)positivecovenant(s)thatmightbefoundinabondindentureI.Thecompanyshallmaintainacurrentratioofor

42、betterII.Thecompanymustlimittheamountofdividendsitpaysaccordingtothestatedformula.Thecompanycannotleaseanymajorassetswithoutapprovalbythelender.Thecompanymustmaintaintheloancollateralingoodworkingorder.IonlyIandIIonlyIandIVonlyIIandIVonlyI,II,andIVonlyDifficultylevel:ChallengePROTECTIVECOVENANTSe54.

43、Protectivecovenants:areprimarilydesignedtoprotecttheissuingcorporationfromunreasonabledemandsofbondholders.areconsistentforallbondsissuedbyacorporationwithintheUnitedStates.arelimitedtostatingactionswhichafirmmusttake.onlyapplytobondsthathaveadeferredcallprovision.areprimarilydesignedtoprotectbondho

44、ldersfromfutureactionsofthebondissuer.Difficultylevel:MediumBONDRATINGSb55.WhichoneofthefollowingstatementsconcerningbondratingsiscorrectStandardandPoorsandValueLinearetheprimarybondratingagencies.Bondratingsaresolelyanassessmentofthecreditworthinessofthebondissuer.Investmentgradebondsincludeonlytho

45、sebondsreceivingoneofthehighestthreebondratings.Bondratingsevaluatetheexpectedpricevolatilityofabondissue.Allbondsreceivethesameratingclassificationfromallratingagencies.Difficultylevel:MediumBONDRATINGSd56.A“fallenangel”isabondthat:lowereditsannualinterestpaymenthasmovedfrombeingalong-termobligatio

46、ntobeingashort-termobligation.hasmovedfromhavingayieldtomaturityinexcessofthecouponratetohavingayieldtomaturitythatislessthanthecouponrate.hasmovedfrombeinganinvestment-gradebondtobeingajunkbond.isratedasBabyoneratingagencyandratedasBBbyanotherratingagency.Difficultylevel:MediumTREASURYBONDSa57.Bond

47、sissuedbytheU.S.government:I.areconsideredtobefreeofdefaultrisk.II.videtotallytax-freeincomec.preferredbyhigh-incomeindividualsbecausetheyofferthec.preferredbyhigh-incomeindividualsbecausetheyofferthec.preferredbyhigh-incomeindividualsbecausetheyofferthec.p

48、referredbyhigh-incomeindividualsbecausetheyoffertheIV.payinterestthatisexemptfromfederalincometaxesIonlyIandIIIonlyIandIVonlyIIandIIIonlyIIandIVonlyDifficultylevel:MediumTREASURYBONDSd58.Treasurybondsare:thosebondsissuedbyanygovernmentalagencyintheU.S.issuedonlyonthefirstdayofeachfiscalyearbythe.Dep

49、artmentofTreasury.besttaxbenefits.d.generallyissuedascouponbondse.totallyrisk-free.Difficultylevel:MediumMUNICIPALBONDSa59.Municipalbonds:offerincometaxadvantagestoindividualsgenerallypayahigherrateofreturnthancorporatebonds.arethosebondsissuedonlybylocalmunicipalities,suchasacityoraborough.arerarel

50、ycallable.payinterestthatisalwaysexemptfrombothfederalandstateincometaxes.Difficultylevel:EasyTAXABLEVERSUSMUNICIPALBONDSd60.Thebreak-eventaxratebetweenataxablecorporatebondyielding7%andacomparablenontaxablemunicipalbondyielding5%canbeexpressedas:a.07(1-t*)=.05.b.05(1-t*)=.07.c.07+(1-t*)=.05.d.07(1-

51、t*)=.05.e.05(1一t*)=.07.Difficultylevel:MediumZEROCOUPONBONDSe61.Azerocouponbond:issoldatalargepremium.hasapriceequaltothefuturevalueofthefaceamountgivenaspecifiedrateofreturn.c.canonlybeissuedbythe.Treasury.d.haslessinterestrateriskthanacomparablecouponbond.e.hasimplicitinterestwhichiscalculatedbyam

52、ortizingtheloan.Difficultylevel:MediumZEROCOUPONBONDSb62.Thetotalinterestpaidonazero-couponbondisequalto:zero.thefacevalueminustheissueprice.thefacevalueminusthemarketpriceonthematuritydate$1,000minusthefacevalue.$1,000minustheparvalueDifficultylevel:MediumFLOATING-RATEBONDSd63.Thecollarofafloating-

53、ratebondreferstotheminimumandmaximum:callperiods.maturitydates.marketprices.couponrates.yieldstomaturity.Difficultylevel:MediumFLOATING-RATEBONDSd64.Whichofthefollowingarecommoncharacteristicsoffloating-ratebondsadjustablecouponratesadjustablematuritydatesputprovisioncouponcapIandIIonlyIIandIIIonlyI

54、,II,andIVonlyI,III,andIVonlyI,II,III,andIVDifficultylevel:MediumFLOATINGRATEBONDSc65.Aerestratestoremainconstantincreasebrieflyandthendeclineslightlycontinuallydeclined

55、eclinebrieflyandthenincreasesignificantlycontinuallyincreaseDifficultylevel:EasyYIELDTOMATURITYe66.Theyieldtomaturityistheratethatequatesthepriceofthebondwiththediscountedcashflows.theexpectedratetobeearnedifheldtomaturitytheratethatisusedtodeterminethemarketpriceofthebond.equaltothecurrentyieldforb

56、ondspricedatpar.Alloftheabove.Difficultylevel:MediumTYPESOFBONDSANDINVESTORPREFERENCESc67.Investorsgenerallytendtobuy:Treasurybondsfortheirhighyields.municipalbondsfortheirhighyields.convertiblebondsfortheirpotentialpriceappreciation.corporatebondsfortheirliquidity.Treasurybondsfortheirpreferentialt

57、axtreatment.Difficultylevel:MediumTYPESOFBONDSb68.Aconvertiblebondisabondthatcanbe:exchangedforcashatprescribedpointsintime.exchangedforastatednumberofsharesofcommonstockofthebondissuer.modifiedfromafixedcouponbondintoafloatingcouponbondatprescribedpointsintime.submittedtotheissuerforredemptionatthe

58、discretionofthebondholder.submittedforpaymentanytimetheeconomyconvertsintoarecessionaryperiod.Difficultylevel:EasyPUTPROVISIONc69.Aputprovisioninabondindentureallows:abondissuertorecallthebondafteraspecifiedperiodoftimeatapricethatexceedsthefaceamount.abondholdertoforcetheissuertoincreasethecouponra

59、teifinflationincreasesbymorethanaspecifiedamount.thebondholdertoforcetheissuertobuybackthebondataspecifiedpricepriortomaturity.theissuertoconvertacouponbondintoazerocouponbondattheirdiscretion.theissuertosuspendinterestpaymentsforanyyearinwhichtheinterestexpenseexceedsthenetincomeofthefirm.Difficult

60、ylevel:EasyFACEVALUEe70.FacevalueisalwayshigherthancurrentpricealwayslowerthancurrentpricethesameasthecurrentpricethecouponamountNoneoftheabove.Difficultylevel:EasyBASISPOINTa71.Onebasispointisequalto:.01%.10%.%.10%.100%.Difficultylevel:EasyCORPORATEBONDQUOTEc72.The“ESTSPREAD”showninTheWallStreetJou