Quiz Ch 06 – Identifying the Term for a Dealer’s Purchase Price of a Bond
Essentials of Corporate Finance
Ross, Westerfield, and Jordan
10th Edition
What is the term used to describe the price at which a dealer is willing to buy a bond?
What is the term used to describe the price at which a dealer is willing to buy a bond?
What is the term used to describe the price at which an investor can purchase a bond in the bond market?
What is the term used to describe a bond that is initially sold at a substantial discount and provides a single payment to bondholders?
What is the term used to describe bonds that were initially rated investment grade but have been downgraded to junk status?
Jeff discovered an old bond certificate on the street, which happened to be a 50-year bond reaching maturity on that day. When he presented the bond to his local bank, he received payment for both the principal and final interest. Based on this information, what type of bond did Jeff find?
Miller Farm Products is issuing an unsecured bond with a maturity of 15 years. Given this information, how can this debt be described?
What is the minimum rating a bond can receive from Standard and Poor’s to be considered an investment-quality bond?
What is the primary objective of a bond sinking fund?
What is generally not included in a bond’s indenture agreement?
What term is synonymous with “crossover” in the context of bonds?