QUESTION 6

1. In this is a long-term debt instrument, this is the periodic interest made while the bond is outstanding

   		Coupon Payment
   		Toehold
   		Founders rights
   		Bond Yield
   		Yield to Call
   		Face Value
   		Seasoned Equity Offering

QUESTION 7

1. Consider a bond that gives the bondholder the option to sell the bond to the issuer at a pre-specified price and time. This options is likely to be used (exercised) in which of the following cases?

   		when the stock price decreases
   		when interest rates decrease
   		when interest rates increase
   		when the stock price increases
   		when callable bonds are sold