State A for TRUE B for FALSE 1. Bond bashottom type of debt. ( 2. Debenture is an unsecured long term bond. ) 3. Mortgaged bond is an unsecured bond ( 4. Eurobonds is a bond issued in a country different from the one in whose currency the bond id denominated. 5. Junk bond is a triple A bond. ( 8. Zero coupon bonds is a type of bond issued at a substantial discount bond from their RM1.000 face values that pay no or little interest ( ) 7- In the case of Insolvency. claims of debt in general, nduding bonds are honored before those both common stock and preferred stock. ( :) 8. Par value or face value will returned to the bondholder at a maturity, usually RM1,200. 9. The maturity of a bond indicates the length of bme until the bond issuer retums the par value to the bondholder and terminates or redeem the bond. ( 10. Indenture is the legal agreement or contract between the firm issuing bonds and the bondholder. ( 11. The trustee represents the bondholder in indenture.( 12. Current yield is the ratio of the annual interest payment to the bonds market price. 13. Trple A bonds tell how strong the obligor's capacity to meet its financial commitment on the obligation is extremely strong. 10 Book value is true value that being observed in the market 15. Intrinsic value is the present value of the assets expected future cash flow 10. Elenkel is a man which the wis one at any Instant me lully reflect all available information, whidrosis in the market value and value bong the same 17. Opportunity cost of und: the next best rate of relin valable to the investor for a qyenlevei olekc 10. The vaje cia bonde positively related to changes in the investors present required rate of return 19. Tha market value alia bond w be more nu pan fitna nestors required rate of column is above a coupon internet atom 20. Discount bond is a bond that is selling above its par. ( 21. If the market price of a bond decreases, then the coupon rate increases 22. Yield to matunty is an investors required rate ofretum on a bond investment 21. If the market price of a bond decreases then the yield to maturity increases 24. The price of outstanding bonds will change as interest rates, and consequently investors required rate of return, change over time 25. The coupon nterest payment of outstanding bonds will change as interest rates change 26. The maturity date usually change over bme ( 27. Maturity period is needed in calculating bonds value 29. Book value is the value of an asset shown on 3 lims balance sheel which is determined by its historical cost rather than its current worth 29 Bond ratings are simply judgement about the future risk potential of the bond. ) 10. A bands par valio s lhe amount that will repay by the firm when the bond matures. usually RM2000 State A for TRUE B for FALSE 1. Bond bashottom type of debt. ( 2. Debenture is an unsecured long term bond. ) 3. Mortgaged bond is an unsecured bond ( 4. Eurobonds is a bond issued in a country different from the one in whose currency the bond id denominated. 5. Junk bond is a triple A bond. ( 8. Zero coupon bonds is a type of bond issued at a substantial discount bond from their RM1.000 face values that pay no or little interest ( ) 7- In the case of Insolvency. claims of debt in general, nduding bonds are honored before those both common stock and preferred stock. ( :) 8. Par value or face value will returned to the bondholder at a maturity, usually RM1,200. 9. The maturity of a bond indicates the length of bme until the bond issuer retums the par value to the bondholder and terminates or redeem the bond. ( 10. Indenture is the legal agreement or contract between the firm issuing bonds and the bondholder. ( 11. The trustee represents the bondholder in indenture.( 12. Current yield is the ratio of the annual interest payment to the bonds market price. 13. Trple A bonds tell how strong the obligor's capacity to meet its financial commitment on the obligation is extremely strong. 10 Book value is true value that being observed in the market 15. Intrinsic value is the present value of the assets expected future cash flow 10. Elenkel is a man which the wis one at any Instant me lully reflect all available information, whidrosis in the market value and value bong the same 17. Opportunity cost of und: the next best rate of relin valable to the investor for a qyenlevei olekc 10. The vaje cia bonde positively related to changes in the investors present required rate of return 19. Tha market value alia bond w be more nu pan fitna nestors required rate of column is above a coupon internet atom 20. Discount bond is a bond that is selling above its par. ( 21. If the market price of a bond decreases, then the coupon rate increases 22. Yield to matunty is an investors required rate ofretum on a bond investment 21. If the market price of a bond decreases then the yield to maturity increases 24. The price of outstanding bonds will change as interest rates, and consequently investors required rate of return, change over time 25. The coupon nterest payment of outstanding bonds will change as interest rates change 26. The maturity date usually change over bme ( 27. Maturity period is needed in calculating bonds value 29. Book value is the value of an asset shown on 3 lims balance sheel which is determined by its historical cost rather than its current worth 29 Bond ratings are simply judgement about the future risk potential of the bond. ) 10. A bands par valio s lhe amount that will repay by the firm when the bond matures. usually RM2000