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11.Most secondary market transactions for corporate bonds take place through

Question : 11.Most secondary market transactions for corporate bonds take place through : 1400440

 

11.Most secondary market transactions for corporate bonds take place through dealers in the over-the-counter (OTC) market.

a.True

b.False

12.A thin market for a security implies a high frequency of trades for that type of security in the markets.

a.True

b.False

13.Corporate bonds have a thin market relative to stocks.

a.True

b.False

14.Prices in the corporate bond market tend to be more volatile than securities sold in markets with greater trading volumes.

a.True

b.False

15.Vanilla bonds have coupon payments that are fixed for the life of the bond, with the principal being repaid at maturity.

a.True

b.False

16.The face or par value for bonds is the amount paid to bondholders at maturity and is always equal to $1,000.

a.True

b.False

17.Zero coupon bonds sell well above their par value because they offer no coupons.

a.True

b.False

18.Convertible bonds can be converted into shares of common stock at some predetermined ratio at the discretion of the bondholder.

a.True

b.False

19.The value, or price, of any asset is the present value of its future cash flows.

a.True

b.False

20.The yield to maturity of a bond is the discount rate that makes the present value of the coupon and principal payments equal to the price of the bond.

a.True

b.False

 

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