The value of the conversion feature on a convertible bond is determined by: A. Its interest rate B. Its maturity date C. The stock price D. The bond's trustee The most recent transaction in ABC 6.50x 2050 was at 95. This bond is trading at: A. A discount B. A premium C. Par D. The yield to maturity Which statement best summarizes the difference between a primary and secondary distribution? A. A primary distribution can only be made for equity issues, while a secondary distribution can only be made for debt issues. B. A primary distribution must be made at the current market price, while a secondary distribution must be made at a fixed public offering price (POP). C. A primary distribution can only be made if the issuance exceeds a specified dollar amount, while a secondary distribution can be made for issues of any size. D. A primary distribution involves the sale of new shares by the issuer, while a secondary distribution involves the sale of shares that are already issued and outstanding. When warrants are issued, the exercise price is: A. Lower than the current market price of the stock B. Higher than the current market price of the stock C. Equal to the current market price of the stock D. Based on the average price of the stock over the last year Common and preferred stock are similar in that: A. Both have a fixed dividend B. The dividends for both must be declared by the board of directors C. Both are guaranteed to receive an annual dividend D. Both have an equal vote on corporate issues U.S. government agency issues are: A. Exempt from federal taxes. B. Exempt from registration under the Securities Act of 1933. C. Issued in bearer form only. D. General obligations of the federal government Preferred dividends: A. Must be satisfied before common dividends B. Must be satisfied after common dividends C. Must be satisfied before bond interest payments D. Must be satisfied each year