Finc 5310 exam - Study guides, Class notes & Summaries

FINC 5310 Exam with correct answers Due to the upside chance of a company doing well, allowing investors to convert their bond into shares, investors are willing to accept a lower coupon rate on convertible bonds than otherwise identical but nonconvertible bonds - Correct Answer-TRUE due to the policies of the Federal Reserve, the yields on treasuries are not a good proxy for the nominal risk-free rate today - Correct Answer-true In an upward(normal)term structure of interest rates, the in...