Maturity matching refers to issuing new bonds

Assignment Help Financial Management

Reference no: EM131992704

1. You are comparing two callable bonds that are exactly the same, however one of them has a higher call premium. This bond is more likely

A. to have a higher value.

B. to be called early.

C. to have a lower yield-to-maturity.

D. to decrease in value when interest rates go down.

2. Maturity matching refers to issuing new bonds

A. that have the same maturity as the currently outstanding bonds.

B. that have the same maturity as the life of the asset being purchased with the proceeds of the bonds.

C. that have the same maturity as the average of currently outstanding government bonds with similar risk.

D. that have a Time-to-Call similar to the Time-to-Maturity.

3. The fact that the interest payments on corporate bonds are made semi-annual means that its cost of capital is higher on an annual basis.

True/False

4. If the yield curve is flat, it is more costly to borrow using long-term bonds versus short term bonds.

True/False

Reference no: EM131992704

Questions Cloud

Management of the human element of the organization : As organizations become more technology-driven, which do you think will become more important-the management of the human element of the organization

Management responsibilities in today world : How do you feel about having management responsibilities in today's world, characterized by uncertainty, ambiguity, and sudden changes

Successful as change occurs within the organization : How might these changes affect the manager's job and the skills that a manager needs to be successful as change occurs within the organization.

What are the challenges faced in rural health : Looking at population groups and some of their unique challenges, respond to the following:

Maturity matching refers to issuing new bonds : Maturity matching refers to issuing new bonds. it is more costly to borrow using long-term bonds versus short term bonds.

What skills will make you a great leader : Based on leadership theories and readings critically discuss What skills will make you a great leader?

Create a new evaluation system for the employees : Drawing on the reading you have done thus far, imagine you are assigned to create a new evaluation system for the employees at the company for which you work.

Eight benefits of a common process : There are eight benefits of a common process to manage both threats and opportunities. Identify two of them and briefly describe them.

Cybersecurity has a serious talent shortage : Focus on talent acquisition and walk through a scenario on sourcing, recruitment, and selection in a labor market with talent shortages.

User Account

All Pages