Questions from Financial Markets


Q: Explain the meaning of a sinking fund provision on a bond issue

Explain the meaning of a sinking fund provision on a bond issue.

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Q: What is the difference between an investment grade bond and a junk

What is the difference between an investment grade bond and a junk bond?

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Q: What happens to the fair present value of a bond when the

What happens to the fair present value of a bond when the required rate of return on the bond increases?

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Q: Discuss the issues surrounding credit rating firms during the financial crisis.

Discuss the issues surrounding credit rating firms during the financial crisis.

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Q: What are the differences among T-bills, T-notes

What are the differences among T-bills, T-notes, and T-bonds?

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Q: How do bond ratings and interest rate spreads on bonds differ?

How do bond ratings and interest rate spreads on bonds differ? Which measure is considered by many investors to be a more comprehensive measure of risk? Why?

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Q: A stock you are evaluating is expected to experience supernormal growth in

A stock you are evaluating is expected to experience supernormal growth in dividends of 8 percent over the next six years. Following this period, dividends are expected to grow at a constant rate of 3...

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Q: Describe the major bond market participants.

Describe the major bond market participants.

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Q: What is the difference between a Eurobond and a foreign bond?

What is the difference between a Eurobond and a foreign bond?

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Q: What are sovereign bonds?

What are sovereign bonds?

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