Tuesday, November 12, 2019

Phil has researched TLM Technologies and believes the firm is poised to vastly increase in value

Phil has researched TLM Technologies and believes the firm is poised to vastly increase in value. He wants to invest in this company. Phil has decided to purchase TLM Technologies bonds so that he can have a steady stream of interest income. However, he still wishes that he could share in the firm's success along with TLM's shareholders. Which one of the following bond features will help Phil fulfill his wish? 
 
A. 
put provision

B. 
positive covenant

C. 
warrant

D. 
crossover rating

E. 
call provision
Refer to section 7.4


70.
A U.S. Treasury bond that is quoted at 100:11 is selling: 
 
A. 
for 11 percent more than par value.

B. 
at an 11 percent discount.

C. 
for 100.11 percent of face value.

D. 
at par and pays an 11 percent coupon.

E. 
for 100 and 11/32nds percent of face value.
Refer to section 7.5


71.
Which of the following correctly describe U.S. Treasury bonds?

I. have a "tick" size of 1/32
II. highly liquid
III. quoted in dollars and cents
IV. quoted at the dirty price 
 
A. 
I and II only

B. 
I and IV only

C. 
II and III only

D. 
II and IV only

E. 
I, II, and III only
Refer to section 7.5

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