Tuesday, November 12, 2019

The items included in an indenture that limit certain actions of the issuer in order to protect bondholder's interests are referred to as the:

The items included in an indenture that limit certain actions of the issuer in order to protect bondholder's interests are referred to as the: 
 
A. 
trustee relationships.

B. 
bylaws.

C. 
legal bounds.

D. 
"plain vanilla" conditions.

E. 
protective covenants.
Refer to section 7.2


18.
A bond that has only one payment, which occurs at maturity, defines which one of the following? 
 
A. 
debenture

B. 
callable

C. 
floating-rate

D. 
junk

E. 
zero coupon
Refer to section 7.4


19.
Which one of the following is the price a dealer will pay to purchase a bond? 
 
A. 
call price

B. 
asked price

C. 
bid price

D. 
bid-ask spread

E. 
par value
Refer to section 7.5


20.
You want to buy a bond from a dealer. Which one of the following prices will you pay? 
 
A. 
call price

B. 
auction price

C. 
bid price

D. 
asked price

E. 
bid-ask spread
Refer to section 7.5

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