Question
. Indicate which of the followingstatements are false. On Friday, 10,000 bonds issued by Glorious Vending were bought by a variety of investors for $1,000
. Indicate which of the following statements are false.
- On Friday, 10,000 bonds issued by Glorious Vending were bought by a variety of investors for $1,000 per bond. If Glorious Vending received $10 million from the sale of these bonds, then the 10,000 bonds were more likely sold on the primary market than the secondary market.
- If Donatello Company is performing very poorly and the firm fails to make promised coupon payments to bondholders, then the bondholders can take legal recourse against the firm.
- On Friday, 10,000 bonds issued by Glorious Vending were bought by a variety of investors for $1,000 per bond. If Glorious Vending received $0 from the sale of these bonds, then the 10,000 bonds were more likely sold on the primary market than the secondary market.
4.On Friday, 10,000 bonds issued by Glorious Vending were bought by a variety of investors for $1,000 per bond. If Glorious Vending received $10 million from the sale of these bonds, then the 10,000 bonds were more likely sold on the secondary market than the primary market.
5.On Friday, 10,000 bonds issued by Glorious Vending were bought by a variety of investors for $1,000 per bond. If Glorious Vending received $0 from the sale of these bonds, then the 10,000 bonds were more likely sold on the secondary market than the primary market.
6.Foreign countries, states, cities, counties, corporations, and the U.S. government are all entities that issue bonds. Note that this statement is true if all six entities issue bonds and that this statement is false if one or more of the six entities does not issue bonds.
7.If a company performs very well, investors in that company's bonds are likely to receive a higher coupon payment than the coupon payment indicated by the bond's coupon rate, face value, and frequency of coupon payments (annual or semi-annual).
8.If Donatello Company is performing very poorly and the firm fails to make promised coupon payments to bondholders, then the bondholders can not take legal recourse against the firm.
9.If a company performs very poorly, investors in that company's bonds may receive a lower coupon payment than the coupon payment indicated by the bond's coupon rate, face value, and frequency of coupon payments (annual or semi-annual).
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