Peregrine Exam Review Questions with Correct Answers (Definite Pass)

Peregrine Exam Review Questions with Correct Answers (Definite Pass) Income stock - Answer-pays higher-than-average dividends compared to other stock issues Value stock - Answer-stock from a company which has a low market price considering historical earning records and value of current assets Blue Chip Stock - Answer-the stock of a large, well-established and financially sound company that has operated for many years Owners of bonds are - Answer-Debt holders, creditors and issuer Bonds usually have - Answer-variable or fixed interest payments Bonds are correlated with - Answer-inverse interest rates T/F Bonds have maturity rates - Answer-T Bonds must be - Answer-paid back in full or risk default Which bond is issued by companies? - Answer-Corporate bonds Companies issue these rather than bank loans - Answer-Corporate bonds Corporate bonds - Answer-offer lower interest rates municipal bonds are - Answer-issued by states and municipalities T/F Municipal bonds are tax free coupon income - Answer-T Government Bonds - Answer-Certificates sold by the government to raise money with the guarantee that the purchaser will be paid back later (with interest) Agency Bonds - Answer-bonds issued by US government agencies Which coupon is given at discount to par value? - Answer-zero-coupon