4. Bene viduetime of bat 4. hiper wiles wer bal brsie at (a) Prevalive, a disternt, p=4 ) the reareit whele patas, then is reviac vilut of ivenad ta the neareat whie dulle a bonden options: $927,$649,$1205,1,112) options: 3927,6 b4, 9.205,1,112) optons: (grentor then, equal to, lees, then) its per vaine, to but the op tiont: (trading at a premitum, trading at per, trading at tiscavi Aola: Suraer Ouviton 1ex2, 50FM Suppose you read an article about the Golden Gate Bridge and Highway District bonds. It includes the following information: Bridge Bonds Series A Dated 7-15-2005 4.375\% Due 7-15-2055@100.00 What is the coupon interest rate of this bond? - 0.435 - 4.375 If the coupon interest rate remains constant from the time of issue until the bond matures, then the bond is called a bond. (floating rate, fixed rate) Which feature of a bond contract allows the issuer to redeem a bond issue immediately in its entirety at an amount greater than par value prior to maturity? Convertible provision Deferred call provision Put provision Call provision Issuers can gradually reduce the outstanding balance of a bond issue by using a sinking fund account into which they deposit a specified amount of money each year. To operationalize the sinking fund provision of an indenture, issuers can (1) purchase a portion of the debt in the open market or (2) call the bonds if they contain a call provision. Under what circumstances would a firm be more likely to buy the required number of bonds in the open market as opposed to using one of the other procedures? When interest rates are higher than they were when the bonds were issued When interest rates are lower than they were when the bonds were issued 4. Bene viduetime of bat 4. hiper wiles wer bal brsie at (a) Prevalive, a disternt, p=4 ) the reareit whele patas, then is reviac vilut of ivenad ta the neareat whie dulle a bonden options: $927,$649,$1205,1,112) options: 3927,6 b4, 9.205,1,112) optons: (grentor then, equal to, lees, then) its per vaine, to but the op tiont: (trading at a premitum, trading at per, trading at tiscavi Aola: Suraer Ouviton 1ex2, 50FM Suppose you read an article about the Golden Gate Bridge and Highway District bonds. It includes the following information: Bridge Bonds Series A Dated 7-15-2005 4.375\% Due 7-15-2055@100.00 What is the coupon interest rate of this bond? - 0.435 - 4.375 If the coupon interest rate remains constant from the time of issue until the bond matures, then the bond is called a bond. (floating rate, fixed rate) Which feature of a bond contract allows the issuer to redeem a bond issue immediately in its entirety at an amount greater than par value prior to maturity? Convertible provision Deferred call provision Put provision Call provision Issuers can gradually reduce the outstanding balance of a bond issue by using a sinking fund account into which they deposit a specified amount of money each year. To operationalize the sinking fund provision of an indenture, issuers can (1) purchase a portion of the debt in the open market or (2) call the bonds if they contain a call provision. Under what circumstances would a firm be more likely to buy the required number of bonds in the open market as opposed to using one of the other procedures? When interest rates are higher than they were when the bonds were issued When interest rates are lower than they were when the bonds were issued