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Q6. Which of the following statements regarding a bond being called is TRUE? Call prices are known as regular redemption prices when bonds are called at:
A) under the call provisions specified in the bond indenture.
B) at the par value.
C) at a premium.
Q7. Which of the following is least likely an amortizing security?
A) Coupon Treasury bonds.
B) Bonds with sinking fund provisions.
C) Mortgage-backed securities (MBS).
Q8. The annual Fixed Income Analysts' Forum had just ended and two attendees, James Purcell and Frederick Hanes, were discussing some of the comments made by the panelists. Purcell and Hanes were specifically concerned with the following two statements that were made:
Panelist 1: Mortgage-backed securities and asset-backed securities are both fixed income securities that are backed by pools of loans and are said to be amortizing securities. For many of the loans, no principal payments are required to be made prior to the maturity date. These securities are said to have a bullet maturity structure.
Panelist 2: If coupon Treasury bonds or corporate bonds are issued with the terms specifying that the principal be repaid over time at the option of the issuer, then these bonds are putable bonds; if the principal is to be repaid over time at the option of the bondholder, then the bonds are termed callable bonds.
With regards to the statements made by Panelist 1 and Panelist 2:
A) both are correct
B) only one is correct.
C) both are incorrect.
Q9. Most often the initial call price of a bond is its:
A) principal plus a premium.
B) par value plus one year's interest.
C) par value.
Q10. Which of the following is most accurate about a bond with a deferred call provision?
A) It could be called at any time during the initial call period, but not later.
B) It could not be called right after the date of issue.
C) Principal repayment can be deferred until it reaches maturity.
Q11. Which of the following is TRUE about the call feature of a bond? It:
A) stipulates whether and under what circumstances the bondholders can request an earlier repayment of the principal amount prior to maturity.
B) describes the maturity date of the bond.
C) stipulates whether and under what circumstances the issuer can redeem the bond prior to maturity.
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发表于 2009-3-2 15:05
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