公司理财英文版题库5.doc

CHAPTER 5 Interest Rate and Bond Valuation Multiple Choice Questions I. DEFINITIONS COUPON a 1. The stated interest payment, in dollars, made on a bond each period is called the bond’s: a. coupon. b. face value. c. maturity. d. yield to maturity. e. coupon rate. Difficulty level: Easy FACE VALUE b 2. The principal amount of a bond that is repaid at the end of the loan term is called the bond’s: a. coupon. b. face value. c. maturity. d. yield to maturity. e. coupon rate. Difficulty level: Easy MATURITY c 3. The specified date on which the principal amount of a bond is repaid is called the bond’s: a. coupon. b. face value. c. maturity. d. yield to maturity. e. coupon rate. Difficulty level: Easy YIELD TO MATURITY d 4. The rate of return required by investors in the market for owning a bond is called the: a. coupon. b. face value. c. maturity. d. yield to maturity. e. coupon rate. Difficulty level: Easy COUPON RATE e 5. The annual coupon of a bond divided by its face value is called the bond’s: a. coupon. b. face value. c. maturity. d. yield to maturity. e. coupon rate. Difficulty level: Easy PAR BONDS a 6. A bond with a face value of $1,000 that sells for $1,000 in the market is called a _____ bond. a. par value b. discount c. premium d. zero coupon e. floating rate Difficulty level: Easy DISCOUNT BONDS b 7. A bond with a face value of $1,000 that sells for less than $1,000 in the market is called a _____ bond. a. par b. discount c. premium d. zero coupon e. floating rate Difficulty level: Easy PREMIUM BONDS c 8. A bond with a face value of $1,000 that sells for more than $1,000 in the market is called a _____ bond. a. par b. discount c. premium d. zero coupon e. floating rate Difficulty level: Easy UNFUNDED DEBT d 9. The unfunded debt of a firm is generally understood to mean the firm’s: a. preferred stock. b. debts that mature in more than one year. c. debentures. d. debts that mature in less than one year