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ESSENTIALS OF CORPORATE FINANCE CH6 QUESTIONS AND ANSWERS WITH SOLUTIONS 2024
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ESSENTIALS OF CORPORATE FINANCE CH6 QUESTIONS AND ANSWERS WITH SOLUTIONS 2024
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ESSENTIALS OF CORPORATE FINANCECH6 QUESTIONS AND ANSWERS WITH
SOLUTIONS 2024
TheItermIstructureIofIinterestIratesIisIprimarilyIbasedIonIwhichIthreeIofItheIfollowing?I
I.IInterestIrateIriskIpremiumI
II.IRealIrateIofIinterestI
III.IDefaultIriskIpremiumI
IV.IInflationIpremiumI
V.ILiquidityIpremium
AII,III,IandIV
BII,III,IandIIV
CII,IIII,IandIV
DIII,IIV,IandIV
EIII,IIII,IandIIVI-IANSWERIB
TheIwrittenIagreementIthatIcontainsItheIspecificIdetailsIrelatedItoIaIbondIissueIisIcalledItheIbond:
AIindenture.
BIissueIpaper.
CIregistrationIstatement.
DIdebenture.
EIdocument.I-IANSWERIA
TheIcallIpremiumIisItheIamountIbyIwhichIthe:
AImarketIpriceIexceedsItheIcallIprice.
BIcallIpriceIexceedsItheImarketIprice.
CImarketIpriceIexceedsItheIparIvalue.
DIfaceIvalueIexceedsItheImarketIprice.
EIcallIpriceIexceedsItheIparIvalue.I-IANSWERIE
, WhichIoneIofItheIfollowingIstatementsIisItrue?
AITheIcurrentIyieldIonIaIparIvalueIbondIwillIexceedItheIbond'sIyieldItoImaturity.
BIAIdiscountIbondIhasIaIcouponIrateIthatIisIlessIthanItheIbond'sIyieldItoImaturity.
CITheIcurrentIyieldIonIaIpremiumIbondIisIequalItoItheIbond'sIcouponIrate.
DIAIpremiumIbondIhasIaIcurrentIyieldIthatIexceedsItheIbond'sIcouponIrate.
EITheIyieldItoImaturityIonIaIpremiumIbondIexceedsItheIbond'sIcouponIrate.I-IANSWERIB
AIbond'sIannualIinterestIdividedIbyIitsIfaceIvalueIisIreferredItoIasIthe:
AIcallIrate.
BImarketIrate.
CIcouponIrate.
DIcurrentIyield.
EIyield-to-maturity.I-IANSWERIC
IfIyourInominalIrateIofIreturnIisI14.38IpercentIandIyourIrealIrateIofIreturnIisI4.97Ipercent,IwhatIisItheIinflationI
rate?
AI9.44Ipercent
BI19.92Ipercent
CI19.35Ipercent
DI8.96Ipercent
EI8.47IpercentI-IANSWERID
WhichIoneIofItheIfollowingIisItheIpriceIthatIanIinvestorIpaysItoIpurchaseIanIoutstandingIbond?
AIBidIprice
BIDirtyIprice
CIFaceIvalue
DICallIprice
EICleanIpriceI-IANSWERIB
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