Which one of the following best defines a plain vanilla bond?
1. Which one of the following best defines a plain vanilla bond?
A. bond secured by agricultural or food inventory
B. bond with relatively standard features
C. unsecured debt
D. bond secured with financial collateral
E. bond that has no coupon payments
Answer
bond with relatively standard features
2. Which one of the following terms is defined as debt issued without specific collateral pledged as security?
A. unsecured debt
B. indenture
C. vanilla bond
D. naked bond
E. risk-free bond
Answer
unsecured debt
3. Which one of the following is an unsecured bond issued by a corporation?
A. indenture
B. general obligation bond
C. plain vanilla bond
D. debenture
E. trust bond
Answer
debenture
4. Which one of the following is the portion of a prospectus that outlines the contractual terms of a new bond issue?
A. indenture summary
B. financial disclosure
C. covenant agreement
D. security agreement
E. trust agreement
5. What is the document called that is distributed to potential bondholders and provides detailed information on the financial position and operations of the bond issuer?
A. indenture summary
B. prospectus
C. trust statement
D. 10K
E. 10Q
6. Which one of the following is an unsecured bond that has a higher claim on a firm's assets than other unsecured bonds?
A. plain vanilla bond
B. subordinated debenture
C. refunded bond
D. senior debenture
E. collateral trust bond
7. During a bankruptcy proceeding, Bond A will be paid only if funds remain after the bonds that have a higher claim on the issuer's assets have been paid. What type of bond is Bond A?
A. plain vanilla bond
B. senior trust bond
C. junior trust bond
D. subordinated debenture
E. senior debenture
8. Which one of the following is the clause which prevents a bond issuer from issuing new debt that has seniority over current debt?
A. first-in-line
B. sinking fund
C. call provision
D. affirmation
E. negative pledge
9. Which one of the following accurately describes bond refunding?
A. replacing maturing bonds with a new bond issue
B. calling existing bonds and refinancing those bonds with new debt
C. paying off bonds early with excess cash generated by the firm
D. replacing maturing bonds with an equity issue
E. paying bonds off early to satisfy disgruntled bondholders
10. Which one of the following provisions grants the bondholder the option of selling the bond back to the issuer at a prespecified price on prespecified dates?
A. convertible
B. call
C. put
D. exchange
E. sinking fund
11. Which one of the following provisions grants the bondholder the option of exchanging a bond for a prespecified number of shares of stock of the same issuer?
A. put
B. call
C. equity
D. conversion
E. sinking
12. Which one of the following defines an in-the-money bond?
A. secured bond with collateral value that exceeds the bond's price
B. callable bond with a call price that exceeds the current market price
C. put bond with a put price that exceeds the current market price
D. convertible bond with a call price that exceeds its conversion value
E. convertible bond with a conversion value that exceeds its call price
13. Which one of the following terms is given to the value of a convertible bond that would equate to the value of a comparable nonconvertible bond?
A. out-of-the money value
B. in-the-money value
C. discounted value
D. external value
E. intrinsic value
14. What is a bond called if it can be converted into shares of stock of a firm other than the bond issuer?
A. swap bond
B. alternate bond
C. exchangeable bond
D. convertible bond
E. callable bond
15. Term bonds are defined as all bonds in a bond issue having which one of the following characteristics?
A. sequential maturity dates
B. serial maturity dates
C. multiple maturity dates
D. an identical maturity date
E. renewable maturity dates
CLICK HERE TO GET THE ANSWER !!!!
No comments:
Post a Comment