14. Which of the following is not a major issuer of bonds? a. State and local go

Question

14. Which of the following is not a major issuer of bonds? a. State and local governments b. U.S. Treasury c. Social Security Administration d. Corporations 15. A bond is currently selling for $900 and the par value is $1,000. Assume that the market interest rate stays the same for the remainder of the life of the bond. a. b. c. As time to maturity decreases, you would expect the bond to rise in price. As time to maturity decreases, you would expect the bond to fall in price. As time to maturity decreases, you would expect the bond to remain the same price. 16. Which of the following actions would tend to lower the riskiness of a bond a. Rating agencies change the issue's bond ratings from BBB to BB. b. The issuing company decides to make the bond issue callable c. The issuing company establishes a sinking fund provision for the bond issue. d. The bond issue is subordinated to previous existing debt. Problems C00 ud nr valu af $1.000. The 20 year bond was issued

Explanation / Answer

1. (C) social security administration

2. (B) As time to maturity decreases, you would expect the bond to fall in price.

3 (C) The iaauing company establisheh a sinking fund provision for the bond issue

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.