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be 11. If a coupon paying bond is issued without a sinking fund provision, its coupon rate should the coupon rate of an equivalent bond
be 11. If a coupon paying bond is issued without a sinking fund provision, its coupon rate should the coupon rate of an equivalent bond which has a sinking fund. a) equal to b) less than c) greater than d) none of the above is true 12. are unsecured bonds that only creditworthy firms can issue. a) Subordinated indentures b) Indentures c) Both (a) and (b) d) none of the above is correct. 13. The annual coupon divided by the face value of a bond is called the a) coupon payment b) face value. c) coupon rate. d) maturity. 14. What is the principal amount of a bond that is repaid at the end of the loan term called? a) coupon. b) face value. c) coupon rate. d) maturity Answer questions 15-17 as either True or False. 15. Typically, if a corporation sells a callable bond, it can call it back the very first year. 16. The written agreement between a firm and investors detailing the terms of a debt issue is called an indenture 17. A Treasury bond could be issued with a maturity of seven years
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