Series 79 - Solomon - Debt Securities 2024 passed

Series 79 - Solomon - Debt SecuritiesTrust Indenture Act 1939 - correct answer Any Corporation that issues over 5MM over 1 year in Debt Securities must issue under an Indenture or Contract Indenture - correct answer -AKA Contract for Bond issue over 5MM over 1year -Company must appoint outside Trustee -If Co. goes Bankrupt the role of the trustee is to recoup the bondholder's money Bond Rating Table - correct answer -Levels AAA; AA; A; BBB; BB -Notches: + and - Investment Grade Bond - correct answer BBB- or Higher, Below BBB- is JUNK Bond Par Value of Bond - correct answer -Usually $1000 -Par Value will be obtained at Maturity -Printed on the certificates -Par Value NEVER changes -The Par Value is not necessarily what the Bond is bought or Sold for Coupon Rate - correct answer -AKA Nominal Yield -Printed on Certificate -NEVER changes -Paid Semi-annually (referred to as "s") Characteristics of Bonds - correct answer -Trading price goes up and down From Investors perspective: -Price UP when interest rates go below the Coupon Rate or Nominal Yield...this is a PREMIUM BOND