Question: Few short multiple choice practice questions, help please 1 In which situation(s) might a bond be called? A uranium producing company issued bonds 3 years

Few short multiple choice practice questions, help please Few short multiple choice practice questions, help please 1 In which situation(s)

1 In which situation(s) might a bond be called? A uranium producing company issued bonds 3 years ago. The bonds will mature 7 years from now. A major nuclear accident occurs today. Uranium is used as a fuel in nuclear plants. What will be the effect on the price of the company's bonds Select one O a. The price will go up. O b. It does not make sense to talk about a price in such dire circumstances. O c. The price will go down O d. The price will remain the same Select one: O a. When the interest rates are sufficiently higher than the coupon rate. O b. When the interest rates are equal to the coupon rate. O c. When the interest rates are sufficiently lower than the coupon rate. d. All of the above O e. None of the above. 2 5 An aeronautic company issued bonds 7 years ago. The bonds will mature 3 years from now. The company announces it has just won its largest contract ever for the production of planes. What is the consequence on the coupon rate of the company's bonds? . =s Determine whether bond 4 below is trading at a prem um, at cr at a clocount? Bund Nu Face Value Redemption Coupon Kale Yeurs to Redemption Vield Rate 1. S1000 Al Par 10 = 10 Atlar 25 = 9 2 S2000 Al Par 5 1 S1000 ALIOS 10 ES Select one: O a. The coupon rate will remain the same O b. The coupon rate will go down O c. The coupon rate will go up. O d. It does not make sense to talk about a coupon rate in such great circumstances. = 655 Select O. This handing at Ob This bond is trading at a discount O c. This bond is trading at a promium 3 Q 7 A gold mining company issued bonds 5 years ago. The bonds will mature 5 years from now. News breaks out that the company's flagship mine just got irreparably flooded. What will happen to the yield on the company's bonds? Determine whether bond 2 below is trading at a premium at par, or as a discount? Bund No. Face Value Redemption Coupon Rate Yeurs to Redemptiun Yield Rate 1. S1000 . 10 J = 105 2. S5000 At Par 25 3. S2000 Al Par 5 3 4. S1000 AI 103 11 Select one: O a. The yield will go down. O b. It does not make sense to talk about a yield in such dire circumstances. O c. The yield will remain the same. O d. The yield will go up. Select cre: O A. This and is trading at a discount b. This bonding at premium O c This band is trading at

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