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5. The market stabilization function usually A. Is performed by the issuing company B. Lasts six to nine months C. Provides price support for the

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5. The market stabilization function usually A. Is performed by the issuing company B. Lasts six to nine months C. Provides price support for the stock during the distribution period D. Is illegal 6. The term debenture refers to A. Long-term, secured debt B. Long-term, unsecured debt C. The after-acquired property clause D. A document covering the specific terms of the offering Which of the following is the lowest in priority of claims against a bankrupt firm? A. An unsecured bond B. A senior debenture C. Common stock D. Federal taxes 7. The "call" provision on some bonds allows A. 8. The bondholder to redeem the bond earlier than the maturity date, but usually involves a call premium The corporation to request additional capital contributions from the bondholder The corporation to redeem the bonds earlier than the maturity date, but usually for a premium over the par value The bondholder to convert the bond into preferred stock B. C. D. The true measure of the return on a bond is its A. Par value B. Coupon rate C. Current yield D. Yield to maturity 9

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