BNFN 3305 - Topic 3 (Activity # 8)

Each of the components of the STRIP are often referred _______

• Convertible Bond

• Discount Bond

• Zero-coupon bond

At settlement, the buyer must pay the seller the purchase price of the T-note or T-bond plus accrued interest. This price is called _______

• Clean Price

• Complete Price

• Dirty Price

The___________ on a TIPS bond can increase (or decrease) by the amount of U.S. inflation

• The interest

• Principle value

• Total income

Sources of repayment on municipal bonds include all but ________

• Revenues generated from a project

• Tax Receipts

• Printing money

In _________Bonds, the entire issue matures on a single date.

• Serial

• Term

• Callable

Junk bonds are also referred as ________

• mortgage bonds

• Debentures

• Subordinated debentures

Conversion is an attractive option to convertible bond holders if the market value of the securities the bond holder receives with conversion is ______ the market value of the bond

• less than

• greater than

• equal to

Yields on callable bonds are ______ non-callable bonds.

• higher than

• lower than

• equal to

A Saudi firm issuing Turkish Lirah-denominated bond in Turkey is an example of _______

• Foreign bond

• Eurobond

• Sovereign bond

Yen-denominated bond issued in US is an example of ________

• Eurobond

• Foreign bonds

• Sovereign bonds