|
LOS b: Identify the types of bonds for which estimating the expected cash flows is difficult, and explain the problems encountered when estimating the cash flows for these bonds.
Q1. Which of the following characteristics would create the least difficulty in estimating a bond’s cash flows?
A) Variable coupon rate.
B) Noncallable bond.
C) Putable bond.
Q2. Which of the following characteristics would create the least difficulty in estimating a bond’s cash flows?
A) Sinking fund provisions.
B) Fixed coupon rate.
C) Conversion privilege.
Q3. Which of the following characteristics would create the most difficulty in estimating a bond's cash flows?
A) Fixed coupon rate.
B) Noncallable bond.
C) Exchange privilege.
| 
发表于 2009-3-2 17:40
| 
