these are my choices they may be wrong. please let me know!
Which of the following events would make it more likely that a company would choose to call its outstanding callable bonds? The company's financial situation deteriorates significantly. Market interest rates rise sharply. The company's bonds are downgraded. Market interest rates decline sharply. Inflation increases significantly. A manufacturing company made recently a large investment in China. While this investment won't have much of an effect on performance in the short run, they are expected to increase future cash flows significantly What effect do you expect on the firms' earnings per share this year, as well as the future stock price, assuming all other factors stay constant and the new investment is expected to be profitable? Earnings per share in the current year will decline. Stock price will increase. Earnings per share in the current year will decline. Stock price will decline. Earnings per share in the current year will increase. Stock price will decline. Earnings per share in the current year will increase. Stock price will increase. None of the statements is correct! Which of the following statements is correct with respect to securitization in the mortgage market? O Securitization has practically eliminated the risk in the mortgage market. Securitization tends to strengthen the link between borrower and lender by encouraging continuous monitoring behavior by the lender. Securitization tends to weaken the link between borrower and lender and reduces the continuous monitoring behavior by the lender. In general, securitization tends to improve credit quality because loans are moved away from the original lenders, hence risk is reduced. All of the statements are correct. The expected risk return trade-off is always upward sloping: O True False If you would have had a crystal glass ball to predict the future two weeks ago, in which of the following bonds should you have invested to make money on the current down market, which was accompanied by a significant drop in interest rates? O 30 T-bond with high coupon payments O 30 year T-bond You should not invest in Bonds during a falling stock market 1 year T-Bill