Professional Documents
Culture Documents
9
Name: ___________________________________________________________ Yr. & Sec. :________
_____ 1. Notes payable that are secured by real assets and that require periodic payments:
a. Mortgages b. Long-term financing c. Bonds d. All of the above e. None of the above
_____ 2. Source of long-term debt financing that have a closed-end provision that prevents the business
enterprise from issuing additional debt of the same priority against the specific property:
a. Mortgages b. Long-term financing c. Bonds d. All of the above e. None of the above
_____ 3. A certificate indicating that the business enterprise has borrowed money and agrees to repay
it:
a. Mortgages b. Long-term financing c. Bonds d. All of the above e. None of the above
_____ 4. A written agreement that describes the features of the bond issue:
a. Indenture b. Bond prices c. Nominal interest rates d. All of the above e. None of the above
_____ 5. A contract between the business enterprise, the bondholder, and the trustee, who makes sure
that the business enterprise meets the terms of the bond contract:
a. Indenture b. Bond prices c. Nominal interest rates d. All of the above e. None of the above
a. Indenture b. Bond prices c. Nominal interest rates d. All of the above e. None of the above
a. Bonds carry interest rate risk, the chance that principal will be lost if interest rates rise and the
bond drops in value
b. Bonds do not participate in corporate profitability
c. Bondholders have no voting rights and therefore no say in how the business is run
d. All of the above
e. None of the above
_____ 8. Types of bonds that are unsecured and can be issued only by large, financially strong
companies with excellent credit ratings:
a. Debentures b. Mortgage Bonds c. Collateral Trust Bonds d. All of the above e. None of the above
a. Debentures b. Mortgage Bonds c. Collateral Trust Bonds d. All of the above e. None of the above