1. Which of the following statements is the most accurate description of non-sovereign and quasi-government bonds?

A. Non-sovereign bonds are issued by agencies that are owned or sponsored by governments. Quasi-government bonds are issued by local government authorities.
B. Non-sovereign bonds are issued by companies. Quasi-government bonds are issued by supranational organizations.
C. Non-sovereign bonds are issued by local government authorities. Quasi-government bonds are issued by agencies that are owned or sponsored by governments.

2. A bond has a par value of $1,000 and a coupon rate of 10%. Coupon payments are made semi-annually. The periodic interest payment is:

A. $50, paid twice a year.
B. $50, paid once a year.
C. $100, paid once a year.

3. Which of the following is least likely to be an example of an affirmative covenant?

A. Taxes will be paid on time.
B. The debt-to-equity ratio will not exceed 0.5.
C. Assets will be maintained.

 

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