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4. In the U.S. the principal value of a bond is most commonly: A. $100. B. $5,000. C. $500. D. $10,000. E. $1,000. 5. Which

4. In the U.S. the principal value of a bond is most commonly:

A. $100.

B. $5,000.

C. $500.

D. $10,000.

E. $1,000.

5. Which set of circumstances would best ensure the price of a bond with attached warrants will increase given no change in the bonds credit quality or terms?

A. an increase in both the market rate of interest and the underlying stock price

B. a decrease in the market rate of interest and an increase in the underlying stock price

C. an increase in the market rate of interest and a decrease in the underlying stock price

D. a decrease in both the market rate of interest and the underlying stock price

E. a decrease in the market rate of interest with no change in the underlying stock price

6. Which characteristic does not apply to Eurobonds?

A. always denominated in euros

B. always denominated in a single currency

C. generally denominated in the issuers home currency

D. issued in multiple countries

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