HCM 416 Ch 11 Quiz - LT Debt
Financing 2024
Short-term bonds have low price risk but -
CORRECT ANSWER high reinvestment rate risk
Nothing - - CORRECT ANSWER is risk-less! Any
investment has risk
Par Value - - CORRECT ANSWER stated face
value of the bond
The interest rate is described as ...
Bond contracts typically contain the following....
coupon rate - - CORRECT ANSWER stated
interest rate on a bond
Maturity Date - - CORRECT ANSWER date when
the par value will be repaid to investors
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