FIN 201. Principles of Finance Pink Slip Questions - Bonds CONCEPT QUESTIONS 1. What is/are the main differences between equity and debt? 2. How much ownership of a corporation de creditors of a firm have? 3. What is the difference between interest paid, and dividend paid by corporations 4. What is/are the differences between debentures and notes? 5. Explain what is the face value of a bond? 6. What is an indenture? What is its purpose? 7. What is the difference between a negative covenant and a positive covenant? 8. Explain what is collateral and what collateral is pledged through a blanket mortgage 9. What is a registered bond? How is it different from a bearer bond? 10. What is subordinated debt? Can equity be subordinated to debt? 11. What is a deferred call provision? Give an example. 12. What is call-premium? Give an example. 13. What is the purpose of a sinking fund? 14. If S&P lowers the bond rating of a bond issuer from AAA, what will be the impact on their bond yields? 15. What is a muni? 16. What is a treasury bond? 17. Give at least two differences between munis and treasuries. 18. What is the difference between a floating rate bond and a zero coupon bond? 19. What is the difference between a convertible bond and a put bond? 20. What role do credit rating agencies play in bonds? FIN 201. Principles of Finance Pink Slip Questions - Bonds CONCEPT QUESTIONS 1. What is/are the main differences between equity and debt? 2. How much ownership of a corporation de creditors of a firm have? 3. What is the difference between interest paid, and dividend paid by corporations 4. What is/are the differences between debentures and notes? 5. Explain what is the face value of a bond? 6. What is an indenture? What is its purpose? 7. What is the difference between a negative covenant and a positive covenant? 8. Explain what is collateral and what collateral is pledged through a blanket mortgage 9. What is a registered bond? How is it different from a bearer bond? 10. What is subordinated debt? Can equity be subordinated to debt? 11. What is a deferred call provision? Give an example. 12. What is call-premium? Give an example. 13. What is the purpose of a sinking fund? 14. If S&P lowers the bond rating of a bond issuer from AAA, what will be the impact on their bond yields? 15. What is a muni? 16. What is a treasury bond? 17. Give at least two differences between munis and treasuries. 18. What is the difference between a floating rate bond and a zero coupon bond? 19. What is the difference between a convertible bond and a put bond? 20. What role do credit rating agencies play in bonds
