BA 323 EXAM 3 2026 BUSINESS INTELLIGENCE
TOOLS DRILL PACK ANSWER SHEET
◉ Which one of t he following is the price a dealer will pay to
purchase a bond?
a. bid-ask spread
b. asked price
c. call price
d. par value
e. bid price.
Answer: e. bid price
◉ You want to buy a bond from a dealer. Which one of the following
prices will you pay?
a. bid-ask spread
b. auction price
c. bid price
d. asked price
e. call price.
Answer: d. asked price
,◉ A deferred call provision is which one of the following?
a. prohibition placed on an issuer which prevents that issuer from
ever redeeming bonds prior to maturity
b. requirement that a bond issuer pay a call premium which is equal
to or greater than one year's coupon should that issuer decide to call
a bond
c. prohibition which prevents bond issuers from redeeming callable
bonds prior to a specified date
d. ability of a bond issuer to delay repaying a bond until after the
maturity date should the issuer so opt
e. requirement that a bond issuer pay the current market price, plus
accrued interest, should the firm decide to call a bond.
Answer: c. prohibition which prevents bond issuers from redeeming
callable bonds prior to a specified date
◉ The current yield is defined as the annual interest on a bond
divided by which one of the following?
a. dirty price
b. coupon
c. market price
d. face value
, e. call price.
Answer: c. market price
◉ Which one of the following relationships is stated correctly?
a. The call price must equal the par value.
b. The coupon rate exceeds the current yield when a bond sells at a
discount.
c. An increase in market rates increases the market price of a a bond.
d. Increasing the coupon rate decreases the current yield, all else
constant.
e. Decreasing the time to maturity increases the price of a discount
bond, all else constant..
Answer: e. Decreasing the time to maturity increases the price of a
discount bond, all else constant.
◉ A bond that is payable to whomever has physical possession of
the bond is said to be in:
a. collateral status
b. registered form
c. bearer form
d. debenture status
TOOLS DRILL PACK ANSWER SHEET
◉ Which one of t he following is the price a dealer will pay to
purchase a bond?
a. bid-ask spread
b. asked price
c. call price
d. par value
e. bid price.
Answer: e. bid price
◉ You want to buy a bond from a dealer. Which one of the following
prices will you pay?
a. bid-ask spread
b. auction price
c. bid price
d. asked price
e. call price.
Answer: d. asked price
,◉ A deferred call provision is which one of the following?
a. prohibition placed on an issuer which prevents that issuer from
ever redeeming bonds prior to maturity
b. requirement that a bond issuer pay a call premium which is equal
to or greater than one year's coupon should that issuer decide to call
a bond
c. prohibition which prevents bond issuers from redeeming callable
bonds prior to a specified date
d. ability of a bond issuer to delay repaying a bond until after the
maturity date should the issuer so opt
e. requirement that a bond issuer pay the current market price, plus
accrued interest, should the firm decide to call a bond.
Answer: c. prohibition which prevents bond issuers from redeeming
callable bonds prior to a specified date
◉ The current yield is defined as the annual interest on a bond
divided by which one of the following?
a. dirty price
b. coupon
c. market price
d. face value
, e. call price.
Answer: c. market price
◉ Which one of the following relationships is stated correctly?
a. The call price must equal the par value.
b. The coupon rate exceeds the current yield when a bond sells at a
discount.
c. An increase in market rates increases the market price of a a bond.
d. Increasing the coupon rate decreases the current yield, all else
constant.
e. Decreasing the time to maturity increases the price of a discount
bond, all else constant..
Answer: e. Decreasing the time to maturity increases the price of a
discount bond, all else constant.
◉ A bond that is payable to whomever has physical possession of
the bond is said to be in:
a. collateral status
b. registered form
c. bearer form
d. debenture status
