16. Recently, we found an Anheuser Busch bond listed online this way: "4.5% debenture bond, callable in 2020, due in 2030. Which of the following is correct? a. This is a secured bond that matures before it is callable. b. This is a secured bond that matures in 2030. c. This is an unsecured bond, where the investor has the option to cash-in either in 2020 or in 2030. d. This is an unsecured bond that pays 4.5% interest annually, may be called in in 2020, and matures in 2030 a. 17. When a publicly traded company wants to raise a large amount of capital ($80 million) rather quickly, in order to expand the business, or pursue a major project, the finance manager will visit the local banker and ask for a loan. b. will only consider selling treasury stock. is likely to issue bonds or sell stock. d. will look for private investors, because, by law, this is all he/she can do. C. 18. If the finance manager decides to issue bonds, he/she will designate them as secured or unsecured. Another term for an unsecured bond is: a. Collateral b. Focused bond C. Junk bond d. Debenture bond 19. A secured bond is backed by collateral. This means: a. The company agrees to close its doors if it is not successful in producing products and services that were intended to be produced with the bond issue funds. b. The company has backed the bond issue with a tangible asset that, if necessary, the company can liquidate and pay off the bondholders when the bonds come due. 20. With respect to corporate bonds, the principle or face value is a. The original value of the bond. b. The value of the bond, plus interest. c. The value of the bond if it is cashed in early. d. The interest rate. 21. If a $1000 bond pays 5% interest annually, the bondholder will receive: a 2.5%, two times/year b. 5%, two times/year. A total of $100/year. d. A total of $500/year. C