Long Term Securities MCQs

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The best advantage of a zero-coupon bond to the issuer is that the






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On January 1, Evangel Company issued 9% bonds in the face amount of $100,000, which Fact Pattern:sulting in a bond discount of $3,793. mature in 5 yea...






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A premium on bonds payable arises when






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On January 1, Evangel Company issued 9% bonds in the face amount of $100,000, which mature in 5 years. The bonds were issued for $96,207 to yield 10%...






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On January 1, Evangel Company issued 9% bonds in the face amount of $100,000, which ct Pattern:Famature in 5 years. The bonds were issued for $96,207 ...






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On January 1, Evangel Company issued 9% bonds in the face amount of $100,000, which ct Pattern:Famature in 5 years. The bonds were issued for $96,207 ...






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On January 1, bonds with a face amount of $200,000, an 8% annual effective yield, and a 7% annual coupon rate were sold by Thomas Dynamics, Inc., for...






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Debentures are






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Which one of the following characteristics distinguishes income bonds from other bonds?






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Serial bonds are attractive to investors because






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Garner Products is considering a new accounts payable and cash disbursement process, which is projected to add 3 days to the disbursement schedule wit...






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Which of the following investments generally pay the highest return?






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Which one of the following is not a characteristic of a negotiable certificate of deposit? Negotiable certificates of deposit






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Which of the following statements is correct when comparing bond-financing alternatives?






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Which of the following are characteristics of Euro bonds?






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At the inception of an operating lease how should the leased asset be accounted for on the lessee financial statements?






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Capital and operating leases differ in that the lessee






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Which of the following is an advantage of debt financing?






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All of the following are advantages of debt financing except






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If an investor is concerned about interest rate risk, the investor should consider investing in






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Bonds in which the principal amount is paid as a series of installments over the life of the bond issue are called






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Wilson Corporation issued bonds two years ago. If the _______ interest rate _______, the market value of the bond will decrease.






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DQZ Telecom is considering a project for the coming year that will cost $50 million. DQZ plans to use the following combination of debt and equity t...






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The best reason corporations issue Eurobonds rather than domestic bonds is that






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Which of the following provisions is generally considered detrimental to the investor?






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Which of the following is not an advantage of leasing as a form of financing?






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Nerco has a bond issue that matures in fifteen years. Recently, the companys bond rating has gone from B to Baa. How would this affect the market p...






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Watco, Inc. issued $1,000,000 in 8% bonds, maturing in ten years and paying interest semiannually. The bonds were issued at face value. What can yo...






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Watco, Inc. issued $1,000,000 in 8% bonds, maturing in ten years and paying interest semiannually. The bonds were issued at face value. If the mark...






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Watco, Inc. issued $1,000,000 in 8% bonds, maturing in ten years and paying interest semiannually. The bonds were issued at face value. Assume that...






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The cash flow expected from a project is Rs. 700, Rs. 1000 and Rs. 1200 in the 1st, 2nd, & 3rd year. The discounting factor @ 10% roi is 1.10, 1.21 ...






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A 10%, 6-years bond, with face value of Rs. 1000 has been purchased by Mr. x for Rs. 900. What is his yield till maturity?






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A bond with a par-value of Rs. 100 is purchased for 95.92 and it paid a Coupon rate of 5%. Calculate its current yield.






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Which of the following comes closest to the fair price on a 6-month futures contract on the S&P 500 index given the following information: an index a...






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Which term describes the following relationship between the expected spot price and the price of the commodity futures contract? E(ST) > FT






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Who is the primary regulator of the managed futures industry?





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With respect to commodities futures contracts, what type of margin relates to the fluctuation in the value of an investor’s account?






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Which of the following describes interest rate parity?






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Consider the case of a non-dividend paying financial asset where F > Ser(T-t). How, in this case, can the hedge fund manager earn a profit?






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Contango futures markets are said to have an upward sloping price curve. What can explain the shape of the price curve?






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What is NOT a distinguishing characteristic of the Mount Lucas Management Commodity Index (vis-à-vis the other commodity indices)?






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How does adding a commodity index to a portfolio of stocks and bonds change the efficient frontier?






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What is the typical fee arrangement paid to Commodity Trading Advisors (CTAs)?





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What does the evidence from an empirical analysis of indices show with respect to adding managed futures to a portfolio of stocks and bonds?






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The domestic one year risk free interest rate is 10%, the current spot exchange rate with a particular foreign currency is 1.00, and a one year futur...






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What has empirical analysis of efficiency frontiers (including US stocks and bonds) with an allocation of 10% to commodity futures and of correlation...






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Which of the following investment securities held by Zoogle Inc. may be classified as held-to-maturity securities in its balance sheet?






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Both fair values and subsequent growth of the investee are not as relevant for investments in which of the following categories?






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Which category completely excludes equity securities?






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In 2009, Osgood Corporation purchased $4 million in ten-year municipal bonds at face value. On December 31, 2011, the bonds had a market value of $3,6...






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On January 1, 2011, Rupar Retailers purchased $100,000 of Anand Company bonds at a discount of $5,000. The Anand bonds pay 6% interest but were purcha...






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If Dinsburry Company concluded that an investment originally classified as a trading security would now more appropriately be classified as held to ma...






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Securities that are purchased with the intent of selling them in the near future to take advantage of short-term price changes are classified as:






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The income statement reports changes in fair value for which type of securities?






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Trading securities are most commonly found on the books of:






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For trading securities, unrealized holding gains and losses are included in earnings:






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Which of the following types of bonds is most likely to maintain a constant market value?






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Metro, Inc., reported net income of $150,000 for the current year. Changes occurred in several balance sheet accounts during the current year as follo...