rejected

accepted

none of the above

further analysed

all of the above

the return that is ultimately recouped within the lifetime of the project

the return that is lost on investing in assets

the return that an investor gives up when their money is invested in one asset rather than the best alternative asset

selecting one would automatically eliminate accepting the other. 

both A and C. 

the projects perform the same function. 

their cash flows are unrelated. 

market value of the bond is decreasing

investor will sell the bond

face value of the bond increases

market value of the bond is increasing

buyers and sellers are brought together for a

transaction fee

all of the above are true of broker markets

brokers build a pool of price information

through their extensive contacts

the commission charged by brokers is a lower

cost to buyers and sellers than the cost of direct search

make periodic payments of interest and repay principal at the maturity date. 

do not need to be

paid back.

pay interest at maturity date. 

are discount securities.

An active secondary market causes companies to

sell their new debt or equity issues at a higher cost of funds

In secondary markets, outstanding shares are

bought and sold among investors

The same function as the primary market

For an investor, the function of secondary

markets is to provide profitability for the shares of securities they own

Par value of a bond is its face value.

All bonds pay coupons.

Bonds can be

seen as annuities for the coupon payments.

A bond that trades above its face value is said to be sold at a premium.