Question
Which of the following will have the greatest need of strong bond covenants if it is to receive a high bond rating? A. an assetminusbacked
Which of the following will have the greatest need of strong bond covenants if it is to receive a high bond rating?
A.
an
assetminusbacked
bond
B.
a debenture
C.
a foreign bond
D.
a mortgage bond
2 In terms of public offerings of bonds, what is an indenture?
A.
a memorandum that must be produced to describe the details of a bond offering
B.
a list of the duties of a trust company representing the bondholders' interests
C.
a formal contract that specifies a firm's obligations to the bondholders
D.
a schedule of the fees charged by an underwriting company
3.
Which of the following would be most likely to have the lowest price?
A.
a straight subordinated bond
B.
a callable subordinated bond
C.
a convertible senior bond
D.
a straight senior bond
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Financial Markets and Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
8th edition
013342362X, 978-0133423624
