TEST BANK
PrinciplesofFinance-TestBank-Ch10
PrinciplesofFinance-TestBank-Ch10.docx
PrinciplesofFinance-TestBank-Ch10.docx
Principles of Finance
s
03/30/22 1
PrinciplesofFinance-TestBank-Ch10.docx
PrinciplesofFinance-TestBank-Ch10.docx
PrinciplesofFinance-TestBank-Ch10.docx
, PrinciplesofFinance-TestBank-Ch10
PrinciplesofFinance-TestBank-Ch10.docx
PrinciplesofFinance-TestBank-Ch10.docx
Principles of Finance
Chapter 10
Test Bank
Bonds and Bond Valuation
True or False Questions
1. A “junk” bond is one that is speculative grade, with a rating below BBB-.
A. True
B. False
Section 10.4 LO 4 Easy
Multiple Choice Questions
1. A bond might be thought of as form of what?
A. Derivative
B. Stock
C. Loan
D. Security
Section 10.1 LO 1 Easy
2. Why are bonds commonly referred to as fixed-income securities?
A. The return on a bond is guaranteed.
B. Most bonds pay a fixed rate of interest.
C. The maturity date of a bond is specified.
D. A bond’s yield to maturity cannot change.
Section 10.1 LO 1 Moderate
3. The interest rate paid by a bond issuer is referred to as the bond’s what?
A. Coupon rate
B. Yield to maturity
C. Collateral
D. Indenture
Section 10.1 LO 1 Moderate
03/30/22 2
PrinciplesofFinance-TestBank-Ch10.docx
PrinciplesofFinance-TestBank-Ch10.docx
PrinciplesofFinance-TestBank-Ch10.docx
PrinciplesofFinance-TestBank-Ch10
PrinciplesofFinance-TestBank-Ch10.docx
PrinciplesofFinance-TestBank-Ch10.docx
Principles of Finance
s
03/30/22 1
PrinciplesofFinance-TestBank-Ch10.docx
PrinciplesofFinance-TestBank-Ch10.docx
PrinciplesofFinance-TestBank-Ch10.docx
, PrinciplesofFinance-TestBank-Ch10
PrinciplesofFinance-TestBank-Ch10.docx
PrinciplesofFinance-TestBank-Ch10.docx
Principles of Finance
Chapter 10
Test Bank
Bonds and Bond Valuation
True or False Questions
1. A “junk” bond is one that is speculative grade, with a rating below BBB-.
A. True
B. False
Section 10.4 LO 4 Easy
Multiple Choice Questions
1. A bond might be thought of as form of what?
A. Derivative
B. Stock
C. Loan
D. Security
Section 10.1 LO 1 Easy
2. Why are bonds commonly referred to as fixed-income securities?
A. The return on a bond is guaranteed.
B. Most bonds pay a fixed rate of interest.
C. The maturity date of a bond is specified.
D. A bond’s yield to maturity cannot change.
Section 10.1 LO 1 Moderate
3. The interest rate paid by a bond issuer is referred to as the bond’s what?
A. Coupon rate
B. Yield to maturity
C. Collateral
D. Indenture
Section 10.1 LO 1 Moderate
03/30/22 2
PrinciplesofFinance-TestBank-Ch10.docx
PrinciplesofFinance-TestBank-Ch10.docx
PrinciplesofFinance-TestBank-Ch10.docx
