?If interest rates decline, bondholders will earn:
A. ?a lower rate of return on reinvested cash flows.
B. ?a higher current yield.
C. ?no capital gain on the bond's maturity.
D. ?a lower coupon interest on the bond.
E. ?a higher maturity value on the maturity date.
Answer: A
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Charger Company's most recent balance sheet reports total assets of $27,000,000, total liabilities of $15,000,000 and total equity of $12,000,000. The debt to equity ratio for the period is (rounded to two decimals):
A. 1.80 B. 0.80 C. 0.56 D. 0.44 E. 1.25
With reference to the United States Bankruptcy Code, which of the following is an advantage of bankruptcy to debtors?
A) It results in a decrease in autonomy. B) The management's ability to make and implement decisions rapidly is enhanced. C) Debtors are not subject to legal and accounting expenses. D) Debtors retain possession of a bankruptcy estate.
Money market mutual funds are special accounts offered by commercial banks and S&Ls
Indicate whether the statement is true or false.
Which of the following is NOT a situation that might lead a firm to increase its holdings of short-term marketable securities?
A. The firm must make a known future payment, such as paying for a new plant that is under construction. B. The firm is going from its peak sales season to its slack season, so its receivables and inventories will experience a seasonal decline. C. The firm is going from its slack season to its peak sales season, so its receivables and inventories will experience seasonal increases. D. The firm has just sold long-term securities and has not yet invested the proceeds in operating assets. E. The firm just won a product liability suit one of its customers had brought against it.