Tuesday, November 12, 2019

Atlas Entertainment has 15-year bonds outstanding. The interest payments on these bonds are sent directly to each

Currently, the bond market requires a return of 11.6 percent on the 10-year bonds issued by Winston Industries. The 11.6 percent is referred to as which one of the following? 
 
A. 
coupon rate

B. 
face rate

C. 
call rate

D. 
yield to maturity

E. 
interest rate
Refer to section 7.1


6.
The current yield is defined as the annual interest on a bond divided by which one of the following? 
 
A. 
coupon

B. 
face value

C. 
market price

D. 
call price

E. 
dirty price
Refer to section 7.1

7.
An indenture is: 
 
A. 
another name for a bond's coupon.

B. 
the written record of all the holders of a bond issue.

C. 
a bond that is past its maturity date but has yet to be repaid.

D. 
a bond that is secured by the inventory held by the bond's issuer.

E. 
the legal agreement between the bond issuer and the bondholders.
Refer to section 7.2

8.
Atlas Entertainment has 15-year bonds outstanding. The interest payments on these bonds are sent directly to each of the individual bondholders. These direct payments are a clear indication that the bonds can accurately be defined as being issued: 
 
A. 
at par.

B. 
in registered form.

C. 
in street form.

D. 
as debentures.

E. 
as callable.
Refer to section 7.2

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