WGU C214 CONCEPTUAL QUESTION 2
WITH CORRECT ANSWERS
26. What Bfeature Bdistinguishes Bbonds Bfrom Bstock? B- BCORRECT
BANSWER B- BPeriodic Bcash Bpayment Bmust Bbe Bmade Bto Binvestor
27. Which B bond B feature B is B not B a B legal B obligation B cited B in B the B Indenture? B - B CORRECT
B ANSWER B -Price
28. Yield Bon Ba Bbond Bcan Bbest Bbe Bdescribed Bas: B- BCORRECT
BANSWER B- BRate Bof Bincrease Bin Bvalue Bof Binvestment
29. When B is B the B bond B yield B equal B to B the B coupon B rate? B - B CORRECT B ANSWER B -At B par
B price
30. For B a B semi-annual B pay B bond, B which B inputs B must B be B adjusted? B - B CORRECT B ANSWER B -
N, B I/Y, B & B PMT
31. Which Bdescribes Bthe Brelationship Bbetween Bprice Band Byield B- BCORRECT
BANSWER B- BPrice Bincrease B= Byield Bdecrease
Yield B increase B = B price B increase
32. Which B does B not B affect B a B bond's B required B yield? B - B CORRECT B ANSWER B -Expected B growth
B rate
33. A B bond's B duration B causes: B - B CORRECT B ANSWER B -Market B risk
34. If Ba Bbond's Bprice Bis Bat Ba Bdiscount, Bthen B- BCORRECT
BANSWER B- BBond Byield Bis Bmore Bthan Bthe Bcoupon Brate
WITH CORRECT ANSWERS
26. What Bfeature Bdistinguishes Bbonds Bfrom Bstock? B- BCORRECT
BANSWER B- BPeriodic Bcash Bpayment Bmust Bbe Bmade Bto Binvestor
27. Which B bond B feature B is B not B a B legal B obligation B cited B in B the B Indenture? B - B CORRECT
B ANSWER B -Price
28. Yield Bon Ba Bbond Bcan Bbest Bbe Bdescribed Bas: B- BCORRECT
BANSWER B- BRate Bof Bincrease Bin Bvalue Bof Binvestment
29. When B is B the B bond B yield B equal B to B the B coupon B rate? B - B CORRECT B ANSWER B -At B par
B price
30. For B a B semi-annual B pay B bond, B which B inputs B must B be B adjusted? B - B CORRECT B ANSWER B -
N, B I/Y, B & B PMT
31. Which Bdescribes Bthe Brelationship Bbetween Bprice Band Byield B- BCORRECT
BANSWER B- BPrice Bincrease B= Byield Bdecrease
Yield B increase B = B price B increase
32. Which B does B not B affect B a B bond's B required B yield? B - B CORRECT B ANSWER B -Expected B growth
B rate
33. A B bond's B duration B causes: B - B CORRECT B ANSWER B -Market B risk
34. If Ba Bbond's Bprice Bis Bat Ba Bdiscount, Bthen B- BCORRECT
BANSWER B- BBond Byield Bis Bmore Bthan Bthe Bcoupon Brate