BA 323 Exam 3 Business Intelligence TOOLS
DRILL Sheet Questions and Answers Verified
Solutions Latest Update 2026/2027
Question:
Which one of t he following is the price a dealer will pay to purchase a bond?
a. bid-ask spread
b. asked price
c. call price
d. par value
e. bid price.
Answer:
e. bid price
Question:
You want to buy a bond from a dealer. Which one of the following prices will you pay?
a. bid-ask spread
b. auction price
c. bid price
d. asked price
e. call price.
Answer:
d. asked price
Question:
A deferred call provision is which one of the following?
a. prohibition placed on an issuer which prevents that issuer from
ever redeeming bonds prior to maturity
b. requirement that a bond issuer pay a call premium which is equal
to or greater than one year's coupon should that issuer decide to call a bond
c. prohibition which prevents bond issuers from redeeming callable
bonds prior to a specified date
d. ability of a bond issuer to delay repaying a bond until after the
, maturity date should the issuer so opt
e. requirement that a bond issuer pay the current market price, plus accrued interest, should the firm
decide to call a bond.
Answer:
c. prohibition which prevents bond issuers from redeeming
callable bonds prior to a specified date
Question:
The current yield is defined as the annual interest on a bond divided by which one of the following?
a. dirty price
b. coupon
c. market price
d. face value
e. call price.
Answer:
c. market price
Question:
Which one of the following relationships is stated correctly?
a. The call price must equal the par value.
b. The coupon rate exceeds the current yield when a bond sells at a
discount.
c. An increase in market rates increases the market price of a a bond.
d. Increasing the coupon rate decreases the current yield, all else
constant.
e. Decreasing the time to maturity increases the price of a discount bond, all else constant..
Answer:
e. Decreasing the time to maturity increases the price of a discount bond, all else constant.
Question:
A bond that is payable to whomever has physical possession of the bond is said to be in:
a. collateral status
b. registered form
DRILL Sheet Questions and Answers Verified
Solutions Latest Update 2026/2027
Question:
Which one of t he following is the price a dealer will pay to purchase a bond?
a. bid-ask spread
b. asked price
c. call price
d. par value
e. bid price.
Answer:
e. bid price
Question:
You want to buy a bond from a dealer. Which one of the following prices will you pay?
a. bid-ask spread
b. auction price
c. bid price
d. asked price
e. call price.
Answer:
d. asked price
Question:
A deferred call provision is which one of the following?
a. prohibition placed on an issuer which prevents that issuer from
ever redeeming bonds prior to maturity
b. requirement that a bond issuer pay a call premium which is equal
to or greater than one year's coupon should that issuer decide to call a bond
c. prohibition which prevents bond issuers from redeeming callable
bonds prior to a specified date
d. ability of a bond issuer to delay repaying a bond until after the
, maturity date should the issuer so opt
e. requirement that a bond issuer pay the current market price, plus accrued interest, should the firm
decide to call a bond.
Answer:
c. prohibition which prevents bond issuers from redeeming
callable bonds prior to a specified date
Question:
The current yield is defined as the annual interest on a bond divided by which one of the following?
a. dirty price
b. coupon
c. market price
d. face value
e. call price.
Answer:
c. market price
Question:
Which one of the following relationships is stated correctly?
a. The call price must equal the par value.
b. The coupon rate exceeds the current yield when a bond sells at a
discount.
c. An increase in market rates increases the market price of a a bond.
d. Increasing the coupon rate decreases the current yield, all else
constant.
e. Decreasing the time to maturity increases the price of a discount bond, all else constant..
Answer:
e. Decreasing the time to maturity increases the price of a discount bond, all else constant.
Question:
A bond that is payable to whomever has physical possession of the bond is said to be in:
a. collateral status
b. registered form
