Investing 31-34 true or false35 & 36 multiple 37-40 true or false

A 300 Quiz 1-Final- Jed References Mailings Review View Help 31. Convertible securities have the same upside potential as the underlying asset. 32. Most convertible bonds are callable. Protected View - Saved to this PC - 33. Equity warrants on convertible bonds may be traded separately from the bond itself. 34. Income received from a convertible bond or preferred stock is not subject to ordinary income tax rates. 35. Advantages to investing in convertible secunties include all of the following EXCEPT a high degree of secunty of both principal and income. secunties typically pay a higher rate of return in the form of interest or dividends than is available from its common stock. A B bonds convertible into common stock usually have higher cash flow yields than the common stock itself. D: the investor controls the form of investment and the timing of the conversion. convertible bonds, are less liquid than straight bonds. 36. Factors that should be considered in selecting a convertible bond issue for investments include all of the following EXCEPT which of the following? ABODE investment banking firm that underwrites the issue growth potential of the firm payback period earnings record over the past five years all of the above are factors that should be considered 37. Investors in higher income tax brackets benefit more from municipal bonds. 38. Interest on private purpose bonds is never exempt from Federal income taxes. 39. The major national online brokerage firms do not have an inventory of bonds themselves, so will not try to see you bonds that they own. 40. Costs to invest in unit trusts are similar to costs to invest in mutual funds.