FIN 315 test 3
Callable
A bond that can be paid off early at the issuer's discretion is referred to as being which type of bond ?
Maturity
A bond's principle is repaid on the _____ date.
Face Value
A discount bond's coupon rate is equal to the annual interest divided by the:
a discount, less than
All else constant, a bond will sell at _____ when the coupon rate is _____ the yield to maturity.
Coupon
Allison just received the semiannual payment of $35 on a bond she owns. Which term refers to this payment ?
Increase at a decreasing rate
As a bond's time to maturity increases, the bond's sensitivity to interest rate risk:
voting by proxy
Authorizing another shareholder to vote on your behalf
Face Value
Bert owns a bond that will pay him $45 each year in interest plus $1000 as a principle payment at maturity. What is the $1000 called?
Debenture (unsecured, no specific pledge of property)
Jason's Paints just issued a 20-year, 7.25 %, unsecured bonds at par. These bonds fit the definition of which one of the following terms?
Is unsustainable over the long term
Supernormal growth is a growth rate that:
Market Price
The current yield is defined as the annual interest on a bond divided by the:
Requires the growth rate to be less than the required return
The dividend growth model:
g1 can be greater than R
When using the 2-stage dividend growth model:
Stocks can have negative growth rates.
Which one of the following statements is correct?
Yield to Maturity < Coupon Rate
Which one of these equations applies to a bond that currently has a market price that exceed par value?
Nasdaq market makers
Who can access level 3 of NASDAQ's information?
g
___ represents the capital gains yield as used in the dividend growth model.
discount rate
a decrease in ______ will increase the current value of a stock according to the dividend growth model.