Quiz Ch 06 – Objectives of Bond Sinking Funds
Essentials of Corporate Finance
Ross, Westerfield, and Jordan
10th Edition
What is the primary objective of a bond sinking fund?
What is the primary objective of a bond sinking fund?
What is generally not included in a bond’s indenture agreement?
What bond investment is most suitable for risk-averse investors seeking to minimize interest rate risk?
What term is synonymous with “crossover” in the context of bonds?
Which individual is most likely to purchase a municipal bond?
What term is used to refer to a junk bond that was initially issued with a bond rating of AA?
In a scenario where intermediate-term pure discount bonds yield a higher rate of return than both shorter-term and longer-term bonds, what is the probable shape of the term structure of interest rates?
When there is an expectation of a steady decrease in inflation, what is the expected pattern of the term structure of interest rates?
What may be part of a bond’s list of negative covenants?
What are the features of a callable bond?