Question: Debt securities Answers: A. are treated the same as equity securities in a bankruptcy proceeding. B. represent a minority ownership interest in the issuer. C.

Debt securities

Answers:

A.

are treated the same as equity securities in a bankruptcy proceeding.

B.

represent a minority ownership interest in the issuer.

C.

pay tax-deductible dividends.

E.

increase a firm's cost of doing business.

The lowest Moody's bond rating that is considered to be an investment-grade rating is

Selected Answer:

Answers:

A.

A.

B.

Ba.

C.

Baa.

D.

BB.

A bond with both a face value and a market value of $1,000 is called a ________ bond.

Selected Answer:

Answers:

A.

premium

B.

par value

C.

zero coupon

E.

floating rate

A $1,000 face value bond is currently callable at a quoted price of 101. What is the amount of the call premium?

Selected Answer:

Answers:

A.

$10.00

B.

$.0101

C.

$1.00

E.

$10.10

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