R &E Q&A
Anyone who is in physical possession of a bearer bond can collect interest payments
and the face value of the bond at maturity regardless of whether or not they are the
rightful owner - (correct answer)True
The current yield for a bond is determined by dividing the annual income amount by the
current market value - (correct answer)True
Since 1990, bond yields for high-quality corporate bonds have increased - (correct
answer)False
The bond debenture is a legal document that details all of the conditions relating to a
bond issue - (correct answer)False
Corporate bonds are a form of equity financing that does not have to be repaid - (correct
answer)False
T-bills are issued in minimum unit of $10000 with maturities that range from 10 to 30
years - (correct answer)False
Maturity dates for corporate bonds generally range from 5 to 10 years - (correct
answer)False
With a registered coupon bond, only the registered owner can collect the principal at
maturity, but interest payments can be paid to anyone - (correct answer)True
Because bonds are considered debt financing that must be repaid at maturity, the
corporation's financial stability has little effect on the bond's value between the issue
date and the maturity date - (correct answer)False
, A subordinated debenture is a more secure investment than a mortgage bond - (correct
answer)False
For Moody's and Standard & Poors, the first four individual bond-rating categories
represent investment-grade securities - (correct answer)True
Tax exempt bonds offer slightly higher interest rates than corporate bonds - (correct
answer)False
All bonds in a serial bond issue mature on the same date - (correct answer)False
Treasury bonds are issued in $5,000 united with 10- year maturities - (correct
answer)False
A mortgage bond is a corporate bond that is secured by various assets of the issuing
firm - (correct answer)True
Treasury notes are issued in $100 units with a maturity of more than 1 year but not
more than 10 years - (correct answer)True
A registered bond is a bond whose ownership is registered in the owners name by the
issuing company - (correct answer)True
For the government bonds, the bid price is the price that a dealer is willing to pay for a
government security - (correct answer)False
A sinking fund is a find to which deposits are made each year for the purpose of
redeeming a bond issue - (correct answer)True
Anyone who is in physical possession of a bearer bond can collect interest payments
and the face value of the bond at maturity regardless of whether or not they are the
rightful owner - (correct answer)True
The current yield for a bond is determined by dividing the annual income amount by the
current market value - (correct answer)True
Since 1990, bond yields for high-quality corporate bonds have increased - (correct
answer)False
The bond debenture is a legal document that details all of the conditions relating to a
bond issue - (correct answer)False
Corporate bonds are a form of equity financing that does not have to be repaid - (correct
answer)False
T-bills are issued in minimum unit of $10000 with maturities that range from 10 to 30
years - (correct answer)False
Maturity dates for corporate bonds generally range from 5 to 10 years - (correct
answer)False
With a registered coupon bond, only the registered owner can collect the principal at
maturity, but interest payments can be paid to anyone - (correct answer)True
Because bonds are considered debt financing that must be repaid at maturity, the
corporation's financial stability has little effect on the bond's value between the issue
date and the maturity date - (correct answer)False
, A subordinated debenture is a more secure investment than a mortgage bond - (correct
answer)False
For Moody's and Standard & Poors, the first four individual bond-rating categories
represent investment-grade securities - (correct answer)True
Tax exempt bonds offer slightly higher interest rates than corporate bonds - (correct
answer)False
All bonds in a serial bond issue mature on the same date - (correct answer)False
Treasury bonds are issued in $5,000 united with 10- year maturities - (correct
answer)False
A mortgage bond is a corporate bond that is secured by various assets of the issuing
firm - (correct answer)True
Treasury notes are issued in $100 units with a maturity of more than 1 year but not
more than 10 years - (correct answer)True
A registered bond is a bond whose ownership is registered in the owners name by the
issuing company - (correct answer)True
For the government bonds, the bid price is the price that a dealer is willing to pay for a
government security - (correct answer)False
A sinking fund is a find to which deposits are made each year for the purpose of
redeeming a bond issue - (correct answer)True
