Zero coupon bonds Study guides, Class notes & Summaries

Common Stock - ANSWER-Is a security that represents ownership in a corporation. Exercise control by electing a board of directors and voting on corporate policy. Are on the bottom of the priority ladder for ownership structure Have rights to a company's assets only after bondholders, preferred shareholders and other debt holders are paid in full. Preferred Stock - ANSWER-Is a class of ownership in a corporation that has a higher claim on its assets and earnings than common stock. ...

Statement of Cash Flows Shows the change in cash balance for a period of time. Focuses only on items where cash is received, or cash is paid. Cash Flow from Operating Activities (CFO) Cash flow that a company generates as a result of day-to-day business operations. Deals with Current Assets and Current Liabilities. 00:14 01:25 Cash Flow from Investing Activities (CFI) Cash flow that is generated from investments in long term assets. Cash Flow from Financing Acti...

CFA Level 1 - 101 Must Knows 368 Questions with Verified Answers Addition Rule of Probability - CORRECT ANSWER ADDITION: P(A or B) = P(A) + P(B) - P(AB) Roy's Safety First Criterion - CORRECT ANSWER Safety First Ratio = (E(R) - Rₜ) / σ Larger ratio is better If (Rₜ) is risk free rate, then it becomes Sharpe Ratio Sharpe Ratio - CORRECT ANSWER Sharpe Ratio = (E(R) - RFR) / σ Larger ratio is better If (Rt) is higher than RFR, then it becomes Safety First Ratio Centra...

TEST BANK FOR Fundamentals of Financial Management, Concise Edition (MindTap Course List) 10th Edition by Eugene F. Brigham, Joel F. Houston Test Bank for All chapters Table of Contents Chapter 1 - An Overview Of Financial Management Chapter 2 - Financial Markets And Institutions Chapter 3 - Financial Statements, Cash Flow, And Taxes Chapter 4 - Analysis Of Financial Statements Chapter 5 - Time Value Of Money Chapter 6 - Interest Rates Chapter 7 - Bonds And Their Valuation Chapter 8 -...

Bond Indenture CORRECT ANSWER Contract that specifies all the rights and obligations of the issuer and owners of a fixed income security. Negative Covenants CORRECT ANSWER Prohibitions on the borrower. Affirmative Covenants CORRECT ANSWER Actions that the borrower promises to perform. Maturity or Term to Maturity CORRECT ANSWER Length of time until loan contract or agreement expires. Remaining life of bond. Par Value CORRECT ANSWER Amount borrower promises to pay on or before maturit...

WGU D076 Final Exam (New 2024/ 2025 Update) Finance Skills for Managers| Questions and Verified Answers| 100% Correct| A Grade QUESTION What two types of "Turnover" are useful for understanding a firm's effi- ciency in creating sales with its assets? Answer: Total Asset turnover and Fixed asset turnover QUESTION Why is operating margin frequently used to compare firms of different structures? Answer: Because it is calculated pre interest. QUESTION Wh...

Series 79 Knopman Marksfalling interest rates - correct answer an investor who expects interest rates to fall would want a long duration zero coupon bond bond pricing - correct answer if an issuer is disappointed with the amount raised in a debt offering it could increase the interest rate i.e. +200bps to +250 bps bond spreads - correct answer High-yield bonds have wider spreads than investment grade or Treasury bonds yield-to-worst - correct answer bond trade confirmation must include ...

Coupon Rate - Correct answer-The interest rate that a company promises to pay on bonds Market Rate - Correct answer-The interest rate on other comparable bonds Par Value - Correct answer-The amount payable on maturity of the bond Market rate - Correct answer-Same as YTM - Yield to Maturity Gordon Growth Model - Correct answer-Assumes stable growth rates and does not incorporate risk CAPM Model - Correct answer-Allows to determine expected return on stocks and incorporates risk How do pu...

CFA Level 1 - Fixed Income question and answers 100% correct 2024 Bond Indenture - correct answer Contract that specifies all the rights and obligations of the issuer and owners of a fixed income security. Negative Covenants - correct answer Prohibitions on the borrower. Affirmative Covenants - correct answer Actions that the borrower promises to perform. Maturity or Term to Maturity - correct answer Length of time until loan contract or agreement expires. Remaining life of bond. ...

CTP FINAL EXAM Questions And Answers 2023 Question 1 ( Topic 1 ) Question 2 ( Topic 1 ) An instrument that gives the right to buy a stated number of shares of common stock at a specified price is known as: • A. an equity warrant • B. a put option • C. a zero coupon bond • D. a subordinated debenture Answer : A Next Question Question 3 ( Topic 1 ) A company plans to issue additional equity within the next 12 months but needs to issue debt at a low interest rate now. Which o...