Question
Hello, I need help with these problems. Please please answer questions and show work. For the answer that requires numbers please show work through excel.
Hello, I need help with these problems. Please please answer questions and show work. For the answer that requires numbers please show work through excel.
1. In Las Vegas issued a general obligation bond for a canal in 1812. It was the first formal debt instrument with a fixed repayment schedule issued by city.
Who is the issuer of the bonds? What type of bonds are these
a. bank of Las Vegas Treasury bonds
b. Las Vegas government Municipal Bonds
c. Federal reserve bank of Las Vegas Corporate Bonds
2.Which of the following statements is TRUE about bonds.
a. Treasury bonds are assumed to have no default risk
b. Treasury bonds are riskless securities
Which of the following types bonds has the lease default risk
a. Municipal bonds
b. Treasury bonds
c. Corporate bonds
To be effective issuing and investing in bonds, knowledge of their terminology, characters, and features is essential.
2.A bond's (coupon payment, yield to maturity, face or maturity value) (pick one) is generally $1,0000 or represents the borrowed from the bonds first purchaser.
A bond issuer is said to be in (default, bankruptcy, liquidation) (pick one) if it does not pay the interest or the principle accordance with the indenture agreement or if it violates one or more of the issues constructive covenants.
A bond contract feature that requires the issuer to retire a specified portion of the bonds issue each year is called a (call provision, sinking fund provision, convertible provision) (pick one)
A bonds ( convertible provision, call provision, call premium) (pick one ) gives the issuer the right to call, or redeem, a bond at specific times and under specific conditions.
Sun Bonds Series A dated 7-15-2005 4.375% Due 7-15-2055 at $100.00
1. What is the coupon interest rate of this bond?
a. 0.435%
b. 4.375%
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