Moode PRAIRIE VIEWA-M HELP ENGLISH-UNITED STATES (EN US) Gueson 13 A speculative

Question

Moode PRAIRIE VIEWA-M HELP ENGLISH-UNITED STATES (EN US) Gueson 13 A speculative (or junk) bond is one which is rated below Select one a AA A sinking fund Select one isaspecialfund set up to pay fthe creators of bankrupt firms O b. requres specific approval by the tirm's the board of directons O c. requires the ssuer to deposit a set amount of ftunds over the ite of the bond (which are used to retre the bond over time O d none of the above A bond with snking nand Teatre wd have required return han another En0 bond wtout snkrg fund feature O a higher O b. lower higher or lower 16 A catuble bond s expected to have a tigher seturn than a sumtar but non-catabie bond O Fase

Explanation / Answer

1

Option B

2
Option C
A sinking fund requires the issuer a=to deposit a set amount of funds over the life of the bomd which are used to retire the bond over time

3
Option B
A BBB sinking fund feature will have lower return than another BBB bond without the sinking fund feature due to lesser default risk in case of sinking fund

4
True
A callable bond will have higher return because clalabale bond=noncallabale or straight bond+call option

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