FINANCE 103 FROM CHAPTER 6 Test Exam
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2022/2023
Selected practice questions from Chapters 6 – 8, FIN 335, with Dr.
Graham
From Chapter 6 – Bonds and Bond Value
The stated interest payment, in dollars, made on a bond each period is called
the bond's:
A) Coupon.
B) Face value.
C) Maturity.
D) Yield to maturity.
E) Coupon
rate. Answer:
A
The principal amount of a bond that is repaid at the end of the loan term is
called the bond's:
A) Coupon.
B) Face value.
C) Maturity.
D) Yield to maturity.
E) Coupon
rate. Answer:
FINANCE 103 FROM CHAPTER 6 Test Exam
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, FINANCE 103 FROM CHAPTER 6 Test Exam
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B
The rate of return required by investors in the market for owning a bond is
called the:
A) Coupon.
B) Face value.
C) Maturity.
D) Yield to maturity.
E) Coupon
rate. Answer:
D
The annual coupon of a bond divided by its face value is called the bond's:
A) Coupon.
B) Face value.
C) Maturity.
D) Yield to maturity.
E) Coupon
rate. Answer:
E
A bond with a face value of $1,000 that sells for less than $1,000 in the
market is called a:
FINANCE 103 FROM CHAPTER 6 Test Exam
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2022/2023
, FINANCE 103 FROM CHAPTER 6 Test Exam
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A) Par bond.
B) Discount bond.
C) Premium bond.
D) Zero coupon bond.
E) Floating rate
bond. Answer: B
A bond with a face value of $1,000 that sells for more than $1,000 in the
market is called a:
A) Par bond.
B) Discount bond.
C) Premium bond.
D) Zero coupon bond.
E) Floating rate
bond. Answer: C
The long-term bonds issued by the United States government are called:
FINANCE 103 FROM CHAPTER 6 Test Exam
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2022/2023
, FINANCE 103 FROM CHAPTER 6 Test Exam
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2022/2023
A) Treasury bonds.
B) Municipal bonds.
C) Floating rate bonds.
D) Junk bonds.
E) Zero coupon
bonds. Answer: A
A bond that makes no coupon payments (and thus is initially priced at a
deep discount to par value) is called a bond.
A) Treasury
B) municipal
C) floating rate
D) junk
E) zero
coupon
Answer: E
A bond which, at the election of the holder, can be swapped for a fixed
number of shares of common stock at any time prior to the bond's
maturity is called a bond.
A) zero coupon
B) callable
C) putable
FINANCE 103 FROM CHAPTER 6 Test Exam
Questions and Answers rated A+ New Update
2022/2023
Questions and Answers rated A+ New Update
2022/2023
Selected practice questions from Chapters 6 – 8, FIN 335, with Dr.
Graham
From Chapter 6 – Bonds and Bond Value
The stated interest payment, in dollars, made on a bond each period is called
the bond's:
A) Coupon.
B) Face value.
C) Maturity.
D) Yield to maturity.
E) Coupon
rate. Answer:
A
The principal amount of a bond that is repaid at the end of the loan term is
called the bond's:
A) Coupon.
B) Face value.
C) Maturity.
D) Yield to maturity.
E) Coupon
rate. Answer:
FINANCE 103 FROM CHAPTER 6 Test Exam
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2022/2023
, FINANCE 103 FROM CHAPTER 6 Test Exam
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B
The rate of return required by investors in the market for owning a bond is
called the:
A) Coupon.
B) Face value.
C) Maturity.
D) Yield to maturity.
E) Coupon
rate. Answer:
D
The annual coupon of a bond divided by its face value is called the bond's:
A) Coupon.
B) Face value.
C) Maturity.
D) Yield to maturity.
E) Coupon
rate. Answer:
E
A bond with a face value of $1,000 that sells for less than $1,000 in the
market is called a:
FINANCE 103 FROM CHAPTER 6 Test Exam
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2022/2023
, FINANCE 103 FROM CHAPTER 6 Test Exam
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2022/2023
A) Par bond.
B) Discount bond.
C) Premium bond.
D) Zero coupon bond.
E) Floating rate
bond. Answer: B
A bond with a face value of $1,000 that sells for more than $1,000 in the
market is called a:
A) Par bond.
B) Discount bond.
C) Premium bond.
D) Zero coupon bond.
E) Floating rate
bond. Answer: C
The long-term bonds issued by the United States government are called:
FINANCE 103 FROM CHAPTER 6 Test Exam
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2022/2023
, FINANCE 103 FROM CHAPTER 6 Test Exam
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A) Treasury bonds.
B) Municipal bonds.
C) Floating rate bonds.
D) Junk bonds.
E) Zero coupon
bonds. Answer: A
A bond that makes no coupon payments (and thus is initially priced at a
deep discount to par value) is called a bond.
A) Treasury
B) municipal
C) floating rate
D) junk
E) zero
coupon
Answer: E
A bond which, at the election of the holder, can be swapped for a fixed
number of shares of common stock at any time prior to the bond's
maturity is called a bond.
A) zero coupon
B) callable
C) putable
FINANCE 103 FROM CHAPTER 6 Test Exam
Questions and Answers rated A+ New Update
2022/2023
