expect to be able to put the answers on the web before your final exam. I do not have a "data base" of the answers to these questions. Some of these questions are on material that was on the first exam and other questions are on material that I covered last year but did not cover this year (such as margin‚ selling stock short). But since some students requested this "data base"‚ it is here‚ if you find it useful. Multiple Choice 1. Multiple Choice (____ points; each multiple choice question
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composed of bonds issued by special purpose vehicles (a corporate entity that holds the assets as collateral‚ packages them and sells the resulting notes to investors). Normally‚ the bonds issued are divided into tranches with different risk characteristics and debt rating. Each tranche carries a different rating which determines the interest and cash flow for each layer. There are several types of underlying assets that the special vehicle can buy. The most typical are corporate bonds‚ corporate
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called an indenture. 6) Bonds that offers the most security to the bondholder are senior mortgage bonds. 7) An indenture is the contract between a corporation and a trustee acting for bondholders. 8) A debenture represents unsecured debt. 9) Common stock is the lowest in priority of claims against a bankrupt firm. 10) Many bonds have some orderly‚ preplanned‚ alternative system of repayment. Examples are sinking funds and serial bonds. 11) A serial bond repayment plan involves a
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Pedro Reyes – FIN/370 Week 1 Individual Assignment Resource: Financial management: Principles and applications Define the following terms and identify their roles in finance: * Finance - The “science of funds management.” Finance includes saving money and often includes lending money. The field of finance deals with the concepts of time‚ money‚ risk and how they are interrelated. Finance also deals with how money is spent and budgeted. * * Efficient market - A market in which
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ll bonds have a face value of $100. Given the yields to maturity of the i) 1‐year 13% coupon bond‚ ii) 2‐year 11.5% coupon bond and iii) 3‐year 9% coupon bond are 10%‚ 9.5% and 9% respectively. Compute f(1‚2)‚ the interest rate of a 1‐year bond in 2 years’ time. Correct Answer: 7.88% Question: Suppose that all investors expect that interest rates on a 1‐year bond for the next 4 years will be as follows: Today interest rate for a 1‐year bond = 5% Forward rate for a 1‐year bond in 1 year = 7%
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Financial Accounting 2 Quiz 15-03008FA Name: ____________________________________________ Course & Section: __________________ General Direction: Write your answer on a separate yellow paper. Pass the test paper and answer sheet after completing the exam. Part 1 – Theories – Multiple Choice. 1. Transaction whereby a debtor and creditor may negotiate the terms of a financial liability with the result that the liability is fully or partially extinguished by the debtor issuing equity instruments
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case of Asia 2. Suk-Joong Kim (2006)‚ Evolution of International Stock and Bond Market Integration: Influence of the European Monetary Union‚ journal of banking and finance 30:5‚ 15071534 3. Hazem A. Marashdeh (2010)‚ Stock Market Integration in the GCC Countries‚ International Research Journal of Finance and Economics. 4. Alexandr Cerny (2004)‚ Stock Market Integration and the Speed of Information Transmission. 5. Asian Bond Rules & Regulations – http://asianbondonline.adb.org/Islamic_finance/structure/rules
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The Open Polytechnic of New Zealand Trimester 1‚ 2012 71303 Corporate Finance Final Examination Time allowed Three hours‚ plus 10 minutes to read this paper. Instructions 1. 2. 3. 4. Answer all questions. Read each question carefully. Start each question on a new page. Show all of your workings. Mark allocation Question Part A Part B 1. 2. 3. 4. 5. Cost of capital Risk and return Investment timing real option Capital structure Dividend policy 14 12 15 20 15 Total 100 Topic Multiple-choice
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7/3/2011 Re: Bond Features: Effects and Benefits to Coupon Rate Answers to questions regarding bond features and how they will positively and negatively affect the coupon rate per Kim McKenzie. 1. The security of the bond: whether the bond has collateral. The more secure the bond is to the investor‚ the lower the interest rate or bond coupon. Therefore‚ with collateral backing the bond‚ the coupon will be lower. The disadvantage of using company collateral to back the bonds is‚ the asset
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spread represents mispricing of two bonds‚ both with the same maturity but one with a coupon rate of 10.625% and the other 4.25%. Our investigation also determines if the yield spread represents an arbitrage opportunity. In our investigation‚ we calculate the theoretical yield spread between the two bonds and compare the figure with the observed yield spread. It is cited in the case that the observed yield spread could be due to different liquidity premium for each bond or simply due to different durations
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