6. You're interested in buying a zero coupon bond. You see two alternatives, Spartan Corporation is issuing a AAA rated 20 year bond. Lion, Inc. is rated A- and is offering a 20 year bond with similar features. Which bond should have the lowest price? *

(1 Punto)

Spartan Corporation

Lion, Inc.

both should have the same price.

not enough information provided

7.During periods of profitability, an investor in a company's debt should expect a return than what an investor in the same company's equity receives. That same debt investor should expect a return than an equity holder if the company is forced into bankruptcy. * (1 Punto)

higher | lower

higher | higher

lower | lower

lower | higher

1. Considering the "Present Value of Future Cash Flows" valuation model, which input would stagflation impact, assuming the Fed is eggressively fighting inflation? (1 Punto)

The level and certainty of future cash flows

The required rate of return

Both of the above

None of the above

11. The maximum loss of a long call position is equal to * (1 Punto)

the exercise price

the strike price

market - strike price

call premium

12. Which of the following is the more bullish strategy? * (1 Punto)

short put option

long put option

short call option

long call option

13. Equity factors are that have historically provided additional

bond features | return risks

| stock characteristics | risk premium

risk entitlements | risk ingredients

risks | refunds

14. For performance measurement and wealth creation computation, Total Return excludes * (1 Punto)

dividend and interest Income

opportunity cost of sitting in cash

unrealized market value change at the horizon realized gains during horizon