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If any of the posters in this section wouldnt mind helping me out with a few questions, i would be much appreciated. I have a take home exam for my investments class and there are about 5 or 6 questions im just not positive on because thier kinda tricky. any help would be to get the right anwsers would be great!!!1
103. During Periods of Econonmic Recession, bondholders ______.
a. are attracked to high-yield bonds
b. are attarcked to high-grade bonds
c. do not vary buying behavior
d. are attracted to coroporate bonds at expense of goverment securites.
104. With respect to bonds, marketability refers to ______.
a. the ability to sell the bonds
b. the ability to sell the bond at an acceptable price
c. the ability to sell the bond at an acceptable price within an acceptable time.
d. all of the above
111. which of the following factors are included in the rating analysis of corporate bonds?
I. the sissue's indenture provisions
II. the liquidity position of the issuing company
III. the issuing company's relative debt burden
IV. the stability of the company's earnings.
a. I and II only
b. I, II, III only
c II, III, IV only
d. I, II, III, and IV
121. If a bond ratings moves from A to AA rating
a. The market yeild of the bond will rise
b. the market price of the bond will rise
c. both.
d. neither
124. The practice application of bond portfolio immunization to investors is that immunization
a. allows agreesive traders to eliminate the price effects caused by interest rate changes.
b allows investors to derive a specified rate of return from bon investments for a given investment horizon
c. eliminates the possibility of losing money due to company defaulting on a its bond payments
d. allows investors to passiely manage thier bond portfolio once its initially immunized.
i have my initial leans to some of theese anwsers, but theres were for the most part the ones that tricked or confused me. I am a long time reader of this section but am still learning the ropes before i dip in. I still dont know shit about stocks yet! lol
thanks in advance
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