Question

Most bonds:     a. are interest-bearing obligations of governments or corporations. b. are floating-rate securities. c....

Most bonds:

   
a. are interest-bearing obligations of governments or corporations.
b. are floating-rate securities.
c. give bondholders a voice in the affairs of the corporation.
d. are money market securities.

Homework Answers

Answer #1

A bond is a financial instrument issued by an organisation that can be a corporation or government organisation. Most bonds-

A. Are interest-bearing obligation of governments or corporations.

Most bonds are fixed rate bonds and not floating rate securities. Owning a share and not a Bond gives the investor a voice in the affairs of the corporation. Most bonds and long term investments and hence are considered as a capital market investment rather than a money market investment.

Do let me know in the comment section in case of any doubt.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
(TCO D) Which of the following statements is FALSE? A.) Bonds are securities sold by governments...
(TCO D) Which of the following statements is FALSE? A.) Bonds are securities sold by governments and corporations to raise money from investors today in exchange for promised future payments. B.) By convention, the coupon rate is expressed as an effective annual rate. C.) Bonds typically make two types of payments to their holders. D.) The time remaining until the repayment date is known as the term of the bond.
floating rate bonds are most likely to be popular with investors when it is anticipated that...
floating rate bonds are most likely to be popular with investors when it is anticipated that a interest rates will stay the same b interest rates will go up c interest rates will go down d short term interest rates will be higher than long term interest rates
20) Interest rate swaps involve the exchange of ________. A) actual fixed-rate bonds for actual floating-rate...
20) Interest rate swaps involve the exchange of ________. A) actual fixed-rate bonds for actual floating-rate bonds B) actual floating-rate bonds for actual fixed-rate bonds C) net interest payments and an actual principal swap D) net interest payments based on notional principal, but no exchange of principal
As we know, floating rate bonds can trade at prices that are different from the par...
As we know, floating rate bonds can trade at prices that are different from the par amounts. Which of the following is least likely a reason that this can happen? a.         There is a potential time lag between the rate change in the market and the time when the coupon is reset b.         The fixed margin on the floating rate security may differ from the   margin required by the market c.         Resetting interest rates makes floating rate bonds more susceptible...
In the money market, if the interest rate exceeds the equilibrium interest rate, there is a...
In the money market, if the interest rate exceeds the equilibrium interest rate, there is a surplus of money. How is the surplus eliminated? A. The high interest rate increases the demand for money, eliminating the surplus. B. People buy bonds to rid themselves of the surplus money, bidding up their price and pushing interest rates down. C. Banks will lend out the surplus, lowering interest rates. D. The Federal Reserve will destroy currency, reducing the quantity of money. ------------------------...
Determinants of Interest Rate for Individual Securities You are considering an investment in 30-year bonds issued...
Determinants of Interest Rate for Individual Securities You are considering an investment in 30-year bonds issued by a corporation. The bonds have no special covenants. The Wall Street Journal reports that 1-year T-bills are currently earning 3.80 percent. Your broker has determined the following information about economic activity and the corporation bonds: Real interest rate = 3.15% Default risk premium = 3.05% Liquidity risk premium = 1.35% Maturity risk premium = 2.80% What is the inflation premium? What is the...
the purchase of an interest rate cap by a borrower with a floating rate loan does...
the purchase of an interest rate cap by a borrower with a floating rate loan does which of the following? A: transfers all interest rate risk to the bank B transfers all interest rate risk away from the borrower to the bank C tranfers some interest rate risk away from the borrower to the cap counterparty D transfers no interest rate risk to the bank because of the cap counterparty's position the largerst asset category for typical deposit-taking commercial banks...
A corporation issues for cash $15,000,000 of 9%, 30 year bonds, interest payable annually, at a...
A corporation issues for cash $15,000,000 of 9%, 30 year bonds, interest payable annually, at a time when the market rate of interest is 8%. The straight line method is adopted for the amortization of bond discount or premium. Which is true? A. the amount of interest paid to bondholders decreases over the life of the bonds B. the amount of annual interest paid to bondholders is $1,200,000 annually C. the amount of annual interest paid to bondholders increases over...
TIPS are A. Treasury bonds that pay a variable rate of interest B. UK bonds that...
TIPS are A. Treasury bonds that pay a variable rate of interest B. UK bonds that protect investors from default risk C. Securities that trade on the Toronto stock index D. Treasury bonds that protect investors from inflation
Which bond should have the highest interest rate? A. Low quality bonds B. Medium quality bonds...
Which bond should have the highest interest rate? A. Low quality bonds B. Medium quality bonds C. High quality bonds Which of the following statements is NOT true? A. Stock owners benefit from stock price increases B. Common stocks are not securities C. Stock prices tend to be very volatile D. Higher stock prices allow companies access to more capital What is the expected impact of a decline in the money supply to the US economy? A. Lower aggregate prices...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT