Bubba buys a 5% bond that matures in 15 years with a 5.10 basis. How much did he pay for the bond?
Answer(s): B
98.96. A calculator is not required for this. Even Bubba knows the bond is obviously trading at a slight discount by yielding 5.10% instead of the coupon rate of 5%. If the yield was the same as the coupon rate, the price is 100.00.
Bonds are most often quoted as a percentage of:
Answer(s): A
face value. The price is 100.00 if the yield is the same as the coupon rate. A price of less than100.00 means the yield is higher than the coupon rate. A price of more than 100.00 means the yield is lower than the coupon rate. The prices are a percentage of 100.00. However, treasury bonds and municipal bonds are not quoted in this way.
Which of the following is a right for shareholders of common stock?
the right to vote about important matters of the company. Shareholders have no expectation of stock price increase or dividends. They are entitled to receive dividends only if the board of directors declares them.
Who owns a corporation?
Answer(s): C
the holders of common stock and the holders of preferred stock. The holders of all classes of stock are the owners. Each stock class has separate privileges, but all represent ownership. Even if the government is an owner, it holds shares of stock.
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Karan Patel commented on August 15, 2023 Yes, Can you please upload the exam? UNITED STATES upvote
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