Bond indenture - Study guides, Class notes & Summaries

SIE Securities Industry Essentials Exam LICENSE EXAM MANUAL 3RD EDITION Contents SIE Exam and Industry Introduction 1 What Is the SIE? 1 How the Exam Is Structured 1 How to Make an Exam Appointment 2 On the Day of Your Exam 3 Knopman Marks Method 4 Financial Industry Introduction 5 Regulatory Entities and Agencies 6 Market Participants 7 Section 1: Understanding Products and Their Risks 11 1. Equity Securitie...

The amount that is originally borrowed or the amount that is repaid when the bond mature is due is known as ___________. A. Indenture. B. Par value. C. Principal amount. D. Maturity value. E. B, C, and D are correct. - Answer-E Which of the following is NOT the amount that is originally borrowed or the amount that is repaid when the bond mature is due? A. Indenture. B. Par value. C. Principal amount. D. Maturity value. E. B, C, and D are correct. - Answer-A Assume that ...

Bond Indenture CORRECT ANSWER Contract that specifies all the rights and obligations of the issuer and owners of a fixed income security. Negative Covenants CORRECT ANSWER Prohibitions on the borrower. Affirmative Covenants CORRECT ANSWER Actions that the borrower promises to perform. Maturity or Term to Maturity CORRECT ANSWER Length of time until loan contract or agreement expires. Remaining life of bond. Par Value CORRECT ANSWER Amount borrower promises to pay on or before maturit...

All else equal, ________ bonds have more reinvestment rate risk than ________ bonds. correct answers high-coupon; low-coupon A bond with a face value of $1,000 currently sells for a discount. Which of the following statements is most correct? correct answers The bond's yield to maturity is greater than its coupon rate. All else equal, if a bond's yield-to-maturity increases its price will _______. correct answers fall True or False: A call provision gives the investor the right to for...

Bonds Payable Arise from a contract called a bond indenture -Represent a promise to pay the principle at maturity and periodic interest based on the stated interest rate and the face value of the bond Valuation of Bonds Payable PV of the principle and periodic interest (PV of FCF) -stated rate = effective/yield (par) -stated rate < effective (discount) -stated rate > effective (premium) Accounting for the Issuance of Bonds 1. Calculate PV (determine issue price) 2. Record bond i...

1. 2. 3. 4. A risk manager is deciding between buying a futures contract on an exchange and buying a forward contract directly from a counterparty on the same underlying asset. Both contracts would have the same maturity and delivery specifications. The manager finds that the futures price is less than the forward price. Assuming no arbitrage opportunity exists, what single factor acting alone would be a realistic explanation for this price difference? a. The futures contract i...

Intermediate Accounting 2 Chapter 14Long Term Debt - correct answer Consists of probable future sacrifices of economic benefits arising fro present obligations that are not payable within a year or the operating cycle of hte company, whichever is longer Long Term liabilities - correct answer Bonds payable, long-term notes payable, mortgages payable, pension liabilities, and lease liabilities Indenture or agreement includes - correct answer The amount authorized to be issued, interest ra...

Employee Benefit and Retirement Accounts - Answer-Which of the following types of accounts make up the majority of non-managed asset products? Investment Management & Advisory Accounts - Answer-Which of the following types of accounts make up the majority of managed asset products? Legislation - Answer-_______________is a law which has been enacted by a legislature and signed into law by the governor or president. Regulation - Answer-___________ is a rule created by an administrative agenc...

Fundamentals of Corporate Finance Exam Questions and Answers 100% Pass coupon - Answer- The stated interest payment made on a bond face value - Answer- The principal amount of a bond that is repaid at the end of the term. Also called par value. coupon rate - Answer- The annual coupon divided by the face value of a bond. (coupon rate = coupon/faсe value) maturity - Answer- The specified date on which the principal amount of a bond is paid. yield to maturity (YTM) - Answer- The rat...

Financial Management FIN 3150 Graded A What is the most complicated sector? Finance Communications Healthcare Energy ️Finance The senior most position in a corporate leadership structure is...? CEO CFO CTO CMO ️CEO Which of the following is not a duty of the chief financial officer? Strategy Funding Profitability Financial Planning and Analysis ️Strategy The purpose of the board of directors is to maximize the value of ...? Shareholders Management Empl...