1. Bonds that may be exchanged for common stock at the option of the bondholders are called

a. Options.

b. Stock bonds.

c. Convertible bonds.

d. Callable bonds.

2. Bonds that are subject to retirement at a stated dollar amount prior to maturity at the option of the issuer are called

a. Callable bonds.

b. Early retirement bonds.

c. Options.

d. Debentures.

3. The contractual interest rate is always stated as a(n)

a. Monthly rate.

b. Daily rate.

c. Semiannual rate.

d. Annual rate.

4. A $1,000 face value bond with a quoted price of 97 is selling for

a. $1,000.

b. $970.

c. $907.

d. $97.

5. A bond with a face value of $200,000 and a quoted price of 102¼ has a selling price of

a. $240,450.

b. $204,050.

c. $200,450.

d. $204,500.

Answer rating: 100% (QA)

1 c Convertibl... View the full answer