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WGU C214 Financial Management - Debt
Valuation and Interest Rates 2025/2026
Exam Questions and Answers | 100%
Pass
Secured Loan - 🧠 ANSWER ✔✔some type of asset is being used as collateral
Unsercure Loan - 🧠 ANSWER ✔✔not backed by a specific asset
Bond - 🧠 ANSWER ✔✔primary means of money borrowed in the corporate world;
it is a debt agreement w/investors & savers that obligates the corporation to make
certain payments- a fixed income sercurity; stream of annual/semi-annual interest
payments and a final principle w/interest payment
Fixed- income securities - 🧠 ANSWER ✔✔pay a fixed interest rate each year
Par value - 🧠 ANSWER ✔✔face value: the sum of money that the corporation
promises to pay at the bond's expiration
Coupon Rate - 🧠 ANSWER ✔✔coupon yield; the interest rate of the bond
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
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STATEMENT. ALL RIGHTS RESERVED
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Maturity - 🧠 ANSWER ✔✔bonds are finite-term securities; issued/start date and
expiration/maturity date
Covenats - 🧠 ANSWER ✔✔outline things the company is obligating itself to do or
not to do in order to protect bondholders
Affirmative covenants - 🧠 ANSWER ✔✔describe things the company pledges
itself to do
Negative covenants - 🧠 ANSWER ✔✔things the company pledges to not do
Yield to maturity - 🧠 ANSWER ✔✔the rate of return investors receive on a bond
Value of a bond - 🧠 ANSWER ✔✔present value of its cash flows
Bond pricing calculations - 🧠 ANSWER ✔✔if YTM & coupon rate are the same,
then PV (payment value) & FV (face value) are the same
Bond pricing calulator inputs - 🧠 ANSWER ✔✔figure PMT first; divide PMT & I
and multiple N if it is not annual
PMT= FV x coupon rate ($1000 x .09= $90) / if needed
FV= face value
N= number of months/years (x if needed)
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
2
STATEMENT. ALL RIGHTS RESERVED
WGU C214 Financial Management - Debt
Valuation and Interest Rates 2025/2026
Exam Questions and Answers | 100%
Pass
Secured Loan - 🧠 ANSWER ✔✔some type of asset is being used as collateral
Unsercure Loan - 🧠 ANSWER ✔✔not backed by a specific asset
Bond - 🧠 ANSWER ✔✔primary means of money borrowed in the corporate world;
it is a debt agreement w/investors & savers that obligates the corporation to make
certain payments- a fixed income sercurity; stream of annual/semi-annual interest
payments and a final principle w/interest payment
Fixed- income securities - 🧠 ANSWER ✔✔pay a fixed interest rate each year
Par value - 🧠 ANSWER ✔✔face value: the sum of money that the corporation
promises to pay at the bond's expiration
Coupon Rate - 🧠 ANSWER ✔✔coupon yield; the interest rate of the bond
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
1
STATEMENT. ALL RIGHTS RESERVED
, 2
Maturity - 🧠 ANSWER ✔✔bonds are finite-term securities; issued/start date and
expiration/maturity date
Covenats - 🧠 ANSWER ✔✔outline things the company is obligating itself to do or
not to do in order to protect bondholders
Affirmative covenants - 🧠 ANSWER ✔✔describe things the company pledges
itself to do
Negative covenants - 🧠 ANSWER ✔✔things the company pledges to not do
Yield to maturity - 🧠 ANSWER ✔✔the rate of return investors receive on a bond
Value of a bond - 🧠 ANSWER ✔✔present value of its cash flows
Bond pricing calculations - 🧠 ANSWER ✔✔if YTM & coupon rate are the same,
then PV (payment value) & FV (face value) are the same
Bond pricing calulator inputs - 🧠 ANSWER ✔✔figure PMT first; divide PMT & I
and multiple N if it is not annual
PMT= FV x coupon rate ($1000 x .09= $90) / if needed
FV= face value
N= number of months/years (x if needed)
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
2
STATEMENT. ALL RIGHTS RESERVED
