MBA 702 MODULE 3 COMPREHENSIVE EXAM QUESTIONS
WITH DETAILED VERIFIED AND 100% ACCURATE
ANSWERS BRAND NEW EXAM ALREADY GRADED (A+
PASS)
Allison just received the semiannual payment of $35 on a bond she
owns. Which term refers to this payment? Ans✓✓✓Coupon
Bert owns a bond that will pay him $45 each year in interest plus $1,000
as principal payment at maturity. What is the $1,000 called?
Ans✓✓✓Face value
A bond's principal is repaid on the ____________ date
Ans✓✓✓maturity
Which one of these equations applies to a bond that currently has a
market price that exceeds par value? Ans✓✓✓Yield to maturity <
Coupon rate
Which one of the following relationships is stated correctly?
Ans✓✓✓Decreasing the time to maturity increases the price of a
discount bond, all else constant
The price sensitivity of a bond increases in response to a change in the
market rate of interest as the: Ans✓✓✓coupon rate decreasies and the
time to maturity increases
, Road Hazards has 12-year bonds outstanding. The interest payments on
these bonds are sent directly to each of the individual bondholders.
These direct payments are a clear indication that the bonds can
accurately be defined as being issued: Ans✓✓✓in registered form
A sinking fund is managed by a trustee for which one of the following
purposes? Ans✓✓✓early bond redemption
A $1,000 face value bond can be redeemed early at the issuer's
discretion for $1,030, plus any accrued interest. The additional $30 is
called the: Ans✓✓✓call premium
A deferred call provision: Ans✓✓✓prohibits the bond issuer from
redeeming callable bonds prior to a specified date.
Municipal bonds: Ans✓✓✓pay interest that is federally tax-free
A zero coupon bond: Ans✓✓✓has more interest rate risk than a
comparable coupon bond
Which one of the following risks would a floating-rate bond tend to have
less of as compared to a fixed-rate coupon bond? Ans✓✓✓interest rate
risk
WITH DETAILED VERIFIED AND 100% ACCURATE
ANSWERS BRAND NEW EXAM ALREADY GRADED (A+
PASS)
Allison just received the semiannual payment of $35 on a bond she
owns. Which term refers to this payment? Ans✓✓✓Coupon
Bert owns a bond that will pay him $45 each year in interest plus $1,000
as principal payment at maturity. What is the $1,000 called?
Ans✓✓✓Face value
A bond's principal is repaid on the ____________ date
Ans✓✓✓maturity
Which one of these equations applies to a bond that currently has a
market price that exceeds par value? Ans✓✓✓Yield to maturity <
Coupon rate
Which one of the following relationships is stated correctly?
Ans✓✓✓Decreasing the time to maturity increases the price of a
discount bond, all else constant
The price sensitivity of a bond increases in response to a change in the
market rate of interest as the: Ans✓✓✓coupon rate decreasies and the
time to maturity increases
, Road Hazards has 12-year bonds outstanding. The interest payments on
these bonds are sent directly to each of the individual bondholders.
These direct payments are a clear indication that the bonds can
accurately be defined as being issued: Ans✓✓✓in registered form
A sinking fund is managed by a trustee for which one of the following
purposes? Ans✓✓✓early bond redemption
A $1,000 face value bond can be redeemed early at the issuer's
discretion for $1,030, plus any accrued interest. The additional $30 is
called the: Ans✓✓✓call premium
A deferred call provision: Ans✓✓✓prohibits the bond issuer from
redeeming callable bonds prior to a specified date.
Municipal bonds: Ans✓✓✓pay interest that is federally tax-free
A zero coupon bond: Ans✓✓✓has more interest rate risk than a
comparable coupon bond
Which one of the following risks would a floating-rate bond tend to have
less of as compared to a fixed-rate coupon bond? Ans✓✓✓interest rate
risk
