FIN350 Exam 3 Prep (CH. 6-8)

Current stock price divided by four quarters of earnings per share

Markets that trade debt securities or instruments with maturities of less than one year.

A stock buy or sell order at a specific price. It will only be executed if the mrkt price meets the specified price

The total return the bond offers if purchased at the current price and held to maturity.

The size of the firm measured as the current stock price multiplied by the number of shares outstanding.

The risk that a security cannot be sold at a fair market price with low transaction costs on short notice.

Return from interest payments; computed as the annual interest payment divided by the current bond price.

A contributing factor to the 2007-2009 mortgage crisis

The annual amount of interest paid expressed as a percentage of the bond's par value.

The ease with which an asset can be converted into cash.

Are municipal bonds federal tax exempt

Funds provided to the financial markets by net suppliers of funds.

The interest rate that would be exist on a risk-free security if no inflation were expected.

The last four quarters of dividend income expressed as a percentage of the current stock price.

Unsecured Bonds

Legal contract describing the bond characteristics and the bondholder and issuer rights

Which theory says the current yield curve reflects the market's current expectations of future short-term rates.

A popular index of 30 large, industry-leading firms.

High credit quality corporate bonds.

Markets in which corporations raise funds through new issues of securities?