#6. Unsecured bonds are called:

A. Debentures

B. Bearer Bonds

C. Notes

D. Zero Coupon Bonds

#7. A government bond is reported selling for 97:16. What is this in dollars?

A. 975.00

B. 971.60

C. 970.16

D. None of the above

#8. A corporation just issued a 10 year, zero coupon bond having a YTM of 10%. Under current tax law, how much interest can the corporation deduct in the first year?

A. 38.56

B. 385.54

C. 424.10

D. 100.00

#9. A firm issues 30 year, semi-annual pay, 8.375% coupon bonds. They are callable after 10 years for a call price of 104.188. If in 20 years the corporation decides to call the bond issue, how much money will they send you?

A. 1,000

B. 1,083.75

C. 104.19

D. 83.75

#10. Corporate bonds normally have a higher YTM than government bonds primarily because of:

A. Real interest rates

B. A default risk premium

C. An inflation premium

D. None of the above

#11. Zero coupon bonds always sell at:

A. A discount

B. A premium

C. Face Value

D. Par Value