menu
Sign up

Which of the Following Is Not Considered When Assigning a Bond

Question 75
Multiple Choice

Which of the following is not considered when assigning a bond rating? A) the variability of earnings B) the expected cash flow C) the rating on the prior issue of securities sold D) the amount of the fixed contractual cash payments

Related questions
Q 76
An issuer of a bond is more likely to exercise a call option on the bond after an increase in interest rates. A) a decrease in interest rates. B) a decrease in the bond's price. C) a downgrade of the bond's rating by Moody's.
Q 77
A conversion option gives a valuable right to a bond's _______; a put option gives a valuable right to a bond's _______. A) issuer; issuer B) issuer; holder C) holder; issuer D) holder; holder
Q 78
Which of the following statements is true? A) Convertible bonds offer higher yields than similar nonconvertible bonds. B) Putable bonds offer higher yields than similar nonputable bonds. C) Bonds with call options must offer higher interest rates than similar noncallable bonds. D) All Treasury securities offer lower rates than any securities issued by business firms. E) All of the above statements are true.
logo
© 2020-2021 Cozyplus FZ LLC. All rights reserved