Question 15. Question : (TCO 5) Nancy Groom owns one $1,000 corporate bond issued by Chevron. The bond has a yield of 10% and pays 8% interest semiannually. How much interest will Ms. Groom receive in 1 year? $50 $100 $80 $40 $1,000 Question 16. Question : (TCO 5) Which of the statements below is false? Stock is a form of equity capital. Stock does not have a maturity date. Bonds are a form of debt capital. Bonds do not have to be repaid at maturity. Interest payments are made to bondholders. Question 17. Question : (TCO 5) All of the statements are false except for which? Convertible corporate bonds are more secure than government bonds. Convertible bonds often pay 3–4% more interest than nonconvertible bonds. Because of the conversion feature, it is not necessary to evaluate convertible corporate bonds. Even if convertible bondholders convert their investment to common stock, the bondholders still receive interest payments. In reality, there is no guarantee that bondholders will convert to common stock even if the market value of the common stock does increase in value. Question 18. Question : (TCO 5) You have been thinking about investing in corporate bonds, but are seeking the most secure bond investment possible. Most likely, you would want to select _____ bonds. debenture subordinated indenture convertible mortgage Question 19. Question : (TCO 5) A(n) _____ fund is a fund to which annual or semiannual deposits are made for the purpose of redeeming a bond issue. serial indenture debenture sinking money
Question 20. Question : (TCO 5) _____ bonds are a part of a single issue, but they mature on different dates. Serial Mortgage Sinking fund Subordinate Debenture BUSN 380 DeVry Week 5 Quiz Latest 1. Question : (TCO 1) Referring to consumer purchases, an example of a personal opportunity cost is buying on credit. selecting a commonly known brand. the influence of advertising on consumers. time used to compare prices. government regulation of deceptive business-government activities in an effort to prevent consumer fraud. Question 2. Question : (TCO 1) The purpose of a cooperative is to solve consumer complaints. test consumer products for quality. lobby for changes in consumer protection laws. obtain brand-name items for less than wholesale. sell products or services to members at reduced prices. Question 3. Question : (TCO 1) _____ brand items are associated with high consistent quality. National Generic Regional Store Manufacturer Question 4. Question : (TCO 1) A 16-ounce package selling for $1.80 would have a unit price of $1.80. $28.80 a pound. 11.25¢ an ounce. $8.80 a quart. 12¢ an ounce. Question 5. Question : (TCO 1) A(n) _____ warranty is a specific agreement created by the seller or manufacturer.