bonds that are registered in the owners name by the issuing company.

why do corporations use corporate bonds?

finance a corporations business activities or difficulty selling stocks.

The dollar amount the bondholder will receive at the bond's maturity.

what is a serial bond?

bonds of a single issue that that mature on different dates.

what is a convertible bond?

a bond which is exchanged for a certain number of the corporations stocks.

what is maturity date?

the date on which the corporation is to pay money that was borrowed

what is a high-yield bond?

corporate bond that pays higher interest but also has a high default risk.

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Conservative Investment Options: Corporate Bonds

10 termsStudBud Administration

financial literacy chapter 12 section 5 questions.

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Questions 10

Answers

1
what type of bond are most corporate bonds?
debentures
high-yield bonds
convertible bonds
serial bonds
2
registered bonds
bonds that are registered in the company's name
bonds that are registered in the owners name by the issuing company.
bonds that are registered to be collected by companies after maturity date.
bonds that are registered in your legal guardians name.
3
why do corporations use corporate bonds?
they feel like it
finance a corporations business activities or difficulty selling stocks.
finance investments and help create spreadsheets.
to sell product to lenders.
4
what is face value?
a persons ability to determine how much money they receive for their bond.
a bond where you are able to receive money depending on your age.
The dollar amount the bondholder will receive at the bond's maturity.
the person on the front of different dollar bills. (5$, 2$, 20$, etc)
5
a sinking fund allows annual or semi-annual deposits to be made for the purpose of redeeming bond issue
True
False
6
what is a serial bond?
bonds of a single issue that mature on the same date.
kellogg's ability to sue if you steal their name brand cereal
bonds of a single issue that that mature on different dates.
bonds of multiple issues that mature on different dates.
7
what is a convertible bond?
the ability a bondholder has to change bonds into other bonds.
a bond secured by various assets of the issuing firm.
a bond which is exchanged for a certain number of the corporations stocks.
a bond that is exchanged for a convertible car
8
what is maturity date?
how old you are.
the date that a corporation was established
the day of the week that a loan is to be payed back by a corporation.
the date on which the corporation is to pay money that was borrowed
9
call feature allows corporations to call in outstanding bonds from current bondholders before the maturity date
False
True
10
what is a high-yield bond?
a bond that has no interest and no default risk
corporate bond that pays higher interest but also has a high default risk.
the rate of return earned by an investor who holds a bond for a given time.
a bond that pays low interest and has a high risk of default.

Conservative Investment Options: Corporate Bonds Flashcards | StudBud