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5-8 please B. Return on Assets, EBITDA c. Accounts Receivable and Inventory Turnover D. Debt to Equity, P/E Ratio Back to the bond agencies. As

5-8 please image text in transcribed
B. Return on Assets, EBITDA c. Accounts Receivable and Inventory Turnover D. Debt to Equity, P/E Ratio Back to the bond agencies. As noted earlier, they generally do a decent job. Historically, what percentage of bonds, initially rated as AAA, were still rated as AAA one year later. 5. A. Over 85% B. 70% C. 50% D. 35% Unsecured bonds maturing in 10 years or less are usually referred to a NOTES. What is the term often used when discussing bonds that have a longer (more than 10 years) maturity? A. Debentures B. Grandfather bonds C. Horizon Bonds D. Bills 6. 7. Instead of issuing one class of bonds, a pool of mortgages, or of mortgage backed bonds, can be bundled then split into different slices (or tranches). What is the term given to the resulting financial instrument? A. Credit Default Swap B. Securitization C. Fragmentation D. Collateralized Debt Obligation . Some bonds have what is called a call provision. What does this mean? A. In order to redeem the bond, the bondholder must call the issuing company before year-end The bondholder can redeem the bond for one with a higher coupon rate The issuing company interest rate environment B. C. can force a redemption if they feel they can benefit by a lower D. The bonds of the issuing company have been downgraded forcing the brok er to call all bondholders directly and make them aware of the change

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