Finance Assignment | Top Essay Writing
Question 1a)
Which of the following statements are correct?
Stock is a form of debt capital.
Stock must be repaid at maturity.
Interest payments to bondholders are at the discretion of the corporation.
Bonds do not have to be repaid at maturity.
Bonds are a form of debt capital.
B) which of the following statements is false?
Treasury securities maybe are purchased through banks or brokers.
Most individual investors that purchase treasury bills, notes, and bonds bid competitively.
Federal government treasury securities offer lower interest rates than corporate bonds.
Federal government securities carry a reduced risk of default when compared to corporate securities.
The federal government sells bonds and securities to finance both the national debt and the government on going activities.
C) Which of the following statements is true?
in bond quotations, prices are given as a percentage of the bond’s value.
To find the market price of a corporate bond, you must contact the corporation that originally issued the bond.
To find the market price of a corporate bond, you must call a stockbroker.
All local newspapers contain information about bond prices
The face value of most corporate bonds is $5,000. Get Finance homework help today
