Home / Questions / MULTIPLE CHOICE 1.Which of the following statements is true? a.A person who buys a
MULTIPLE CHOICE
1.Which of the following statements is true?
a.A person who buys a bond always pays the face value for the bond.
b.If a corporation issues a bond and Dennis buys it, Dennis becomes one of the owners of the corporation.
c.A stockholder of Firm X is one of the owners of Firm X.
d.The owner of the bond receives periodic payments equal to its coupon rate times the price he paid for the bond.
2.An IOU that promises to pay a certain amount at maturity, and also to pay periodic fixed amounts until that date, is called a(n)
a.stock.
b.equity.
c.bond.
d.futures contract.
3.The major components of a bond include all of the following except its
a.maturity date.
b.face value.
c.price.
d.coupon rate.
4.The face value of a bond is
a.the dollar amount that a person would receive if he or she were to sell the bond.
b.the dollar amount that a person would receive if he or she were to buy the bond.
c.the total value of payments that will be made over the course of the bond's life.
d.the dollar amount of the bond's final payment at maturity.
5.A bond is
a.a claim on the assets of a corporation such that the purchaser has an ownership right in the corporation.
b.anything of value to which the firm has a legal claim.
c.a means of assuring that the business firm will pay its debts or fulfill other legal obligations.
d.a promise to pay for the use of someone else's money.
6.When a person buys a bond of the XYZ Corporation, he or she can expect to
a.pay the corporation a certain amount of money each quarter of the year.
b.receive the face value of the bond each year and the face value of the bond when the bond matures.
c.receive the coupon rate times the face value of the bond each year and the face value of the bond when the bond matures.
d.receive the face value of the bond each year in perpetuity.
Dec 08 2019 Read more Less More
demostrate the value of onjective knowledge and skill development in the study of organizational behavior
Aug 27 2020Drug companies are pursuing collaborative efforts with other companies to manage in the world of pharmacogenomics and individualized medicine. What are some examples of t...
Aug 27 2020Find the image of half plane x>c for positive c for the transformation w=1/z >
Aug 06 2020How do you create a journal entry accurately ?
Sep 10 2020Effect of transactions on working capital and current ratio [LO 6] Evans, Inc., had current liabilities at November 30 of $137,400. The firm's current ratio at that date ...
May 06 2020The difference in the lengths of an arc and its subtended chord on the earth surface for a distance of 18.2 km, is onlyA.1 cmB.5 cmC.10 cmD.100 cm.9. >The boundary of wat...
Jul 02 2020Intangibles: Assets and Expenses - The Barb Company has provided information on intangible assets as follows:1. A patent was purchased from the Lou Company for $1,500,000...
May 23 2020Calculation of Accounts Receivable Turnover
Nov 28 2017You would like to combine a risky stock with a beta of 1.6 with U.S. Treasury bills in such a way that the risk level of the portfolio is equivalent to the risk level of ...
Aug 13 2020Obtain the excess entropy production and analyze the stability of the stationary states for the following reaction schemes:(a) W ⇌ X ⇌ Z, in which the concentrations of W...
Jun 14 2020
Welcome to MyCourseHelp Services, World's leading Academic solutions provider with Millions of Happy Students.
