Quiz Ch 24 – T/F Sinking Funds Impact on Bond Risk
Principles of Corporate Finance
Brealey, Myers, and Allen
13th Edition
True or false: Sinking funds contribute to reducing the risk of default by shortening the average life of a bond.
True or false: Sinking funds contribute to reducing the risk of default by shortening the average life of a bond.
True or false: Standardized futures contracts consistently expire on the same day each year.
True or false: A swap involves two counterparties arranging to exchange one stream of cash flows for another.
True or false: Swap contracts is structured based on either interest rates or currencies.
True or false: Warrant holders enjoy dividend receipts but do not have voting rights.
What do they agree to in a currency swap between two borrowers?
What happens to a firm’s financials when warrants are exercised?
What is the primary purpose of employee stock options?
What is the theoretical maximum value of a convertible bond?
Which represent types of secured debt?