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Do you still have time? Thanks! 1. When a company issues a bond, it submits information about the company's financial position to the independent bond

Do you still have time? Thanks!

1.When a company issues a bond, it submits information about the company's financial position to the independent bond rating agencies. These agencies then evaluate the company's financial condition and determine the likelihood that the company will be able to make the interest payments on the debt and the likelihood the bond issue will ultimately be repaid. This assessment of creditworthiness or risk then receives a(n) ________ that provides potential investors with information. (Points : 1)
letter grade certification of value review of credit history approval of credit

Question 2.2.Which of the following terms does not belong with the others? (Points : 1)
angel investor venture capitalist saver deficit unit

Question 3.3.Unlike the capital market, which involves long-term securities, the money market involves securities that mature ________. (Points : 1)
one year or less in six months each quarter between one and three years

Question 4.4.The big stock markets, with which you are familiar, such as the NYSE and the National Association of Securities Dealers Automated Quotation System (NASDAQ), are all ________ where stocks and bonds are traded between investors. (Points : 1)
secondary markets money markets principal markets primary markets

Question 5.5.________ have physical locations. (Points : 1)
Money markets Over-the-counter markets Organized security exchanges Electronic markets

Question 6.6.Which of the following is not a form of equity? (Points : 1)
common stock-par value paid-in capital accrued expenses preferred stock

Question 7.7.An option open to a firm is to ________ via a bank loan, or they may opt to sell bonds or other short-term debt, such as commercial paper, instead. (Points : 1)
borrow money develop reserves circulate capital issue stock

Question 8.8.Which method of issuing common stock doesNOTinvolve underwriting? (Points : 1)
privileged subscription negotiated purchase best efforts basis competitive bid

Question 9.9.Which method of issuing common stock doesNOTinvolve an investment banker? (Points : 1)
privileged subscription negotiated purchase Dutch auction direct sale

Question 10.10.When a company asks bidders to submit the price they are willing to pay for a certain number of shares and then issues the available stock to the highest bidders, they have used a ________ method. (Points : 1)
privileged subscription negotiated purchase Dutch auction direct sale

Question 11.11.________ bond-holders can exchange their bond for a predetermined number of shares of stock. (Points : 1)
Eurobond Convertible Mortgage Debenture

Question 12.12.Because it is unsecured, ________ bonds are risky and have higher return rates than secured bonds. (Points : 1)
Eurobond convertible mortgage debenture

Question 13.13.The yield curve shows the relationship between years to maturity and the ________of U.S. Treasury securities. (Points : 1)
dividends interest rate term structure inflation rate

Question 14.14.Most yield curves have a(n) ________ shape. (Points : 1)
downward-sloped upward-sloped humpbacked flat

Question 15.15.The ________ is the premium expected to compensate for the price change expected due to inflation. (Points : 1)

nominal rate of return real rate of return inflation premium risk premium

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