QUESTION Bond issuers may differ in terms of their creditworthiness? This difference affects The ability of a bond issuer to issue new bonds. The ability of a bond issuer to make the required payments on its bonds. The ability of a bond issuer to obtain credit. All of the above. QUESTION 5 The Wall Street Journal reports that the ability of Company XYZ to repay its obligations in full is uncertain. This means that the company will have to issue debt with longer maturities than would a company with a lower probability of default will sell its bonds at higher prices than would a company with a lower probability of default. must offer investors higher yields to compensate them for the risk they take in buying their bonds or making loans. must do so through financial markets rather than through financial intermediaries. QUESTION6 Suppose you are interested to know the default risk premium you expect to receive before you buy bonds issued by Ford Motors. To that end, you refer to an index published monthly by the Securities and Exchange Commission. you refer to an index published monthly by The Wall Street Journal. you calculate the difference between the yield on Ford Motors bond and the yield on a U.S. Treasury bond of the same maturity and that will be the default premium you expect to receive. you calculate the difference between the nominal yield and the real after-tax yield on Ford Motors bond and that wil be the default premium you expect to receive QUESTION Bond issuers may differ in terms of their creditworthiness? This difference affects The ability of a bond issuer to issue new bonds. The ability of a bond issuer to make the required payments on its bonds. The ability of a bond issuer to obtain credit. All of the above. QUESTION 5 The Wall Street Journal reports that the ability of Company XYZ to repay its obligations in full is uncertain. This means that the company will have to issue debt with longer maturities than would a company with a lower probability of default will sell its bonds at higher prices than would a company with a lower probability of default. must offer investors higher yields to compensate them for the risk they take in buying their bonds or making loans. must do so through financial markets rather than through financial intermediaries. QUESTION6 Suppose you are interested to know the default risk premium you expect to receive before you buy bonds issued by Ford Motors. To that end, you refer to an index published monthly by the Securities and Exchange Commission. you refer to an index published monthly by The Wall Street Journal. you calculate the difference between the yield on Ford Motors bond and the yield on a U.S. Treasury bond of the same maturity and that will be the default premium you expect to receive. you calculate the difference between the nominal yield and the real after-tax yield on Ford Motors bond and that wil be the default premium you expect to receive
