An increasing required rate of return has what impact on a bond's price?

Question 1 options:

a)

It causes the price to fall

b)

It causes the price to rise

c)

It does not impact the price

d)

We cannot tell from just this if there is an impact.

If a bond's coupon rate exceeds its required rate of return, the sale price (value) would be

Question 2 options:

a)

Less than face value

b)

More than face value

c)

We cannot determine from just this information

d)

The two are not related in terms of determining price

If a bond's coupon rate is less than its required rate of return, the sale price (value) would be

Question 3 options:

a)

Less than face value

b)

More than face value

c)

We cannot determine from just this information

d)

The two are not related in terms of determining price

Majority voting

Question 4 options:

a)

Makes it possible for a minority owner to elect some board of director members

b)

Allows any group with more than 50% ownership to elect all of the directors

c)

Helps prevent hostile takeovers

d)

Allows those with minority ownership interests to challenge management

In bonds, the coupon rate refers to the

Question 5 options:

a)

Initial value of the bond

b)

Actual interest rate the bond pays to the bondholder

c)

The date on which the bond is repaid by the company

d)

The yield required by the market