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6. _______________ preferred stock pays a dividend higher than the stated rate if the common stock pays a dividend greater than a set amount. Arrearage
6. _______________ preferred stock pays a dividend higher than the stated rate if the common stock pays a dividend greater than a set amount.
- Arrearage
- Cumulative
- Indentured
- Participating
7. Companies have the right to buy back ________________ bonds before maturity.
- Callable
- Convertible
- Floating
- Sinking Fund
8. For discount bonds, the current yield is ____________ than the nominal yield and __________ than the Yield to Maturity.
- Lower; Lower
- Lower; Higher
- Higher; Higher
- Higher; Lower
9. Investment grade bonds have a rating of ____________ and above.
a) A b) BBB c) BB d) B
10. Which type of security is the most liquid?
- Common Stock
- Muni Bonds
- Options
- Treasury Bills
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