WGU C214 CONCEPTUAL QUIZ 2 Question and answers rated A+ 2026
1.26. What feature distinguishes bonds from stock? Periodic cash
payment must
be made to
2 27. Which bond feature is not a legal obligation cited investor
. in the Indenture?
Price
3. 28. Yield on a bond can best be described as: Rate of increase in value
of
investment
4. 29. When is the bond yield equal to the coupon rate? At par price
5. 30. For a semi-annual pay bond, which inputs must be N, I/Y, & PMT
adjusted?
6. 31. Which describes the relationship between Price increase = yield
price and yield de-crease
Yield increase = price
in-crease
7. 32. Which does not affect a bond's required yield? Expected growth
rate
8. 33. A bond's duration causes: Market risk
9. 34. If a bond's price is at a discount, then Bond yield is more than
the coupon rate
10. 35. What is the difference between common 12. 37. What
and pre-ferred stock? are the
two
11. 36. If rating agencies downgrade a bond from sources of
AAA to BBB, what happens? profit to a
stock in-
1/
5
, vestor? Preferred stock
dividends are fixed
The bond price
decreases
Dividends and capital
gains
2/
5
1.26. What feature distinguishes bonds from stock? Periodic cash
payment must
be made to
2 27. Which bond feature is not a legal obligation cited investor
. in the Indenture?
Price
3. 28. Yield on a bond can best be described as: Rate of increase in value
of
investment
4. 29. When is the bond yield equal to the coupon rate? At par price
5. 30. For a semi-annual pay bond, which inputs must be N, I/Y, & PMT
adjusted?
6. 31. Which describes the relationship between Price increase = yield
price and yield de-crease
Yield increase = price
in-crease
7. 32. Which does not affect a bond's required yield? Expected growth
rate
8. 33. A bond's duration causes: Market risk
9. 34. If a bond's price is at a discount, then Bond yield is more than
the coupon rate
10. 35. What is the difference between common 12. 37. What
and pre-ferred stock? are the
two
11. 36. If rating agencies downgrade a bond from sources of
AAA to BBB, what happens? profit to a
stock in-
1/
5
, vestor? Preferred stock
dividends are fixed
The bond price
decreases
Dividends and capital
gains
2/
5
