Bond indenture - Study guides, Class notes & Summaries

CFA Level 1 - Fixed Income question and answers 100% correct 2024 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. ...

MODULE 5- MHA 706 EXAM QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS Cost of capital interest rate on debt security and influenced by interest rates. Factors that influence the general level of interest rates -investment opportunities -time preferences for consumption -risk -inflation expectations Investment opportunities and interest rates the more profitable options the higher the interest rate. Time preference on interest rates people will prefer short term consumption vs. long te...

Mary just purchased a bond which pays $60 a year in interest. What is this $60 called? - coupon Bert owns a bond that will pay him $75 each year in interest plus a $1,000 principal payment at maturity. What is the $1,000 called? - face value A bonds coupon rate is equal to the annual interest divided by which one of the following? - face value The specified date on which the principal amount of a bond is payable is referred to as which one of the following? - maturity Currently, the bond ...

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...

FIN 400 Final Exam with Questions and Answers Why consider bonds? ANSWER 1. Reduce risk through diversification 2. Produce steady income 3. Can be a safe investment if held to maturity 4. Interest rates decrease= bond prices increase Why to NOT consider bonds? ANSWER 1. Interest rates increase= bond prices decrease 2. Issuer have financial problems; bondholder's may pay 3. Callable: Interest rates decrease= bond is called 4. May have a problem selling bonds early, unreasonable pr...

On the 2-year anniversary of their registration and every 3 years thereafter. - correct answerWhen must RRs complete the Regulatory Element of Continuing Education? True - correct answerTrue or False: Firm Element Continuing Education requires BDs to update employees on job and product-related subjects. U4 - correct answerTo apply for a securities license, one must file Form _____ with FINRA. Action (buy/sell), Amount (quantity), and Asset (security) - correct answerWhat three items mus...

Series 79 - Solomon - Debt SecuritiesTrust Indenture Act 1939 - correct answer Any Corporation that issues over 5MM over 1 year in Debt Securities must issue under an Indenture or Contract Indenture - correct answer -AKA Contract for Bond issue over 5MM over 1year -Company must appoint outside Trustee -If Co. goes Bankrupt the role of the trustee is to recoup the bondholder's money Bond Rating Table - correct answer -Levels AAA; AA; A; BBB; BB -Notches: + and - Investment Grade Bond...

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...

FIN 3403 Exam 2 Test Bank | 100% Correct Answers | Verified | Latest 2024 Version Mary just purchased a bond which pays $60 a year in interest. What is this $60 called? - coupon Bert owns a bond that will pay him $75 each year in interest plus a $1,000 principal payment at maturity. What is the $1,000 called? - face value A bonds coupon rate is equal to the annual interest divided by which one of the following? - face value The specified date on which the principal amount of a bond ...

On the 2-year anniversary of their registration and every 3 years thereafter. When must RRs complete the Regulatory Element of Continuing Education? True True or False: Firm Element Continuing Education requires BDs to update employees on job and product-related subjects. U4 To apply for a securities license, one must file Form _____ with FINRA. Action (buy/sell), Amount (quantity), and Asset (security) What three items must be specified on a not held order A not held order will be c...