Question: HELP ME SOLVE MY FINANCE MULTIPLE CHOICE 15) () Callable bonds usually have a higher yield than comparable noncallable bonds. (I) Convertible bonds are attractive
15) () Callable bonds usually have a higher yield than comparable noncallable bonds. (I) Convertible bonds are attractive to bondholders and sell for a higher price than comparable nonconvertible bonds. A) (I) is true, (II) false. B) (I) is false, (I1) true. C) Both are true. D) Both are false. 16) Long-term unsecured bonds that are backed only by the general creditworthiness of the issuer are called A) junk bonds. B) callable bonds. C) convertible bonds. D) debentures. 17) Financial guarantees A) are insurance policies to back bond issues. B) are purchased by financially weaker security issuers. C) lower the risk of the bonds covered by the guarantee. D) do all of the above. E) do only A and B of the above. 18) A bond rated D may be: A) In technical default. B) From a bankrupt company. C) Trades at a deep discount. D) A and C E) All of the above 19) Corporate bonds are less risky if they are risky if they are A) secured; revenue B) secured: general obligation C) unsecured; revenue D) unsecured; general obligation bonds and municipal bonds are less _bonds
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