You want to invest in bonds. Explain whether or not each provision listed will make the bonds more or less
desirable as an investment: call provision, convertible bond provision, subordinated debt.
What will be an ideal response?
A call provision makes the bonds less desirable. A call provision protects the issuer in case interest rates drop. Thus,
the bonds will only be called if it is advantageous for the issuer and not so for the bondholders.
Convertible bonds are more desirable. Bonds may be converted at the option of the bondholder if the value of the stock
that may be obtained from conversion is higher than the value of the bonds. Thus, the straight bond value sets a floor
and the conversion feature may result in an increase in value above that floor.
Subordinated debt is less desirable. Unsubordinated debt gets preference in the event of bankruptcy and liquidation.
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Indicate whether the statement is true or false
Halfway through the semester, Samuel quit doing assignments for and going to his advanced accounting class. He attributes this to his poor performance on the first two tests, as well as his lack of talent for accounting; he feels he will do much better as a management major. Samuel is likely to be experiencing
A. low emotional stability. B. an external locus of control. C. low self-esteem. D. low self-efficacy for accounting. E. low emotional intelligence.
Figure 4-5Considering Figure 4-5 above, a college education would be found in what level of the Maslow hierarchy of needs?
A. personal B. social C. safety D. self-actualization E. physiological
A contract is formed by the performance of the requested act in what kind(s) of contract?
A) Unilateral B) Bilateral C) Both A and B D) Neither A nor B