Finance Exam 2

The current yield is defined as the? annual coupon divided by the market price
The right of the bond issuer to repurchase the bond at predetermined price prior to maturity is referred to as? Call provision
A deep discount bond that pays no regular interest payments is called zero coupon bond
The rate of return you earn on an investment before adjusting for inflation is called the? nominal rate
Which one of the following bonds tends to be the most interest rate sensitive? a 20yr zero bond coupon
may cast all votes for one member of the board of directors Cumulative voting refers to the process in which a shareholder
Stock which generally pays a fixed dividend and receives priority in the payment of dividends and the distribution of corporate assets is called? Preferred stock
The market where one shareholder sells shares to another shareholder is called the? secondary market
Stated interest Rate The interest rate expressed in terms of the interest payment made each period also quotes interest rate
Effective annual rate (EAR) the interest rate expressed as id it were compounded once per year
Coupon Stated interest payment made on a bond
face value the principal amount of a bond that is repaid at then end of the term also par value
coupon rate the annual coupon divided by the face value of a bond
current yield A bond’s annual coupon divided by its price

Leave a Reply

Your email address will not be published. Required fields are marked *