Questions from General Investment

Q: What is a strike price? How does it differ from the

What is a strike price? How does it differ from the market price of the stock?

Q: Can issue characteristics (such as coupon and call features) affect

Can issue characteristics (such as coupon and call features) affect the yield and price behavior of bonds? Explain.

Q: What is the difference between a call feature and a sinking-

What is the difference between a call feature and a sinking-fund provision? Briefly describe the three types of call features. Can a bond be freely callable but nonrefundable?

Q: What is the difference between a premium bond and a discount bond

What is the difference between a premium bond and a discount bond? What three attributes are most important in determining an issue’s price volatility?

Q: Bonds are said to be quoted “as a percent of par

Bonds are said to be quoted “as a percent of par.” What does that mean? What is one point worth in the bond market?

Q: What are bond ratings, and how can they affect investor returns

What are bond ratings, and how can they affect investor returns? What are split ratings?

Q: Marc Dodier is a recent university graduate and a security analyst with

Marc Dodier is a recent university graduate and a security analyst with the Kansas City brokerage firm of Lippman, Brickbats, and Shaft. Marc has been following one of the hottest issues on Wall Stree...

Q: From the perspective of an individual investor, what good are bond

From the perspective of an individual investor, what good are bond ratings? Do bond ratings indicate the amount of market risk embedded in a bond? Explain.

Q: What are some of the advantages and disadvantages of owning common stock

What are some of the advantages and disadvantages of owning common stock? What are the major types of risks to which stockholders are exposed?

Q: Is there a single market rate of interest applicable to all segments

Is there a single market rate of interest applicable to all segments of the bond market, or is there a series of market yields? Explain and note the investment implications of such a market environmen...