6. _______________ preferred stock pays a dividend higher than the stated rate if the common stock pays a dividend greater than a set amount.

1. Arrearage
2. Cumulative
3. Indentured
4. Participating

7. Companies have the right to buy back ________________ bonds before maturity.

1. Callable
2. Convertible
3. Floating
4. Sinking Fund

8. For discount bonds, the current yield is ____________ than the nominal yield and __________ than the Yield to Maturity.

1. Lower; Lower
2. Lower; Higher
3. Higher; Higher
4. 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?

1. Common Stock
2. Muni Bonds
3. Options
4. Treasury Bills