Crowdly

Let's have a bond with the following features:

Coupon
rate = 11%
Annual
coupons
Par
= $1,000
Maturity
= 10 years
YTM
(Yield to Maturity) = 7%

It is premium bond

It is a discount bond

How is a bond described?

A bank loan.

A savings account.

A checking acount.

A loan with a future date of payment with interest.

What are the two main types of stock?

Common and Director

Preferred and Shares

Common and Preferred

Board and Preferred

Choose the right answers

The dividend payout ratio compares a company's dividend payment to its earnings per share

company's dividend payment to its market price

The dividend yield ratio compares a company's dividend payment to its earnings per share.

The dividend yield ratio compares a company's dividend payment to its market price

Which is considered a disadvantage of stock ownership?

Increase in demand

Capital loss

Stocks may or may not issue dividends

Stock split

A trader wants to create a risk

management strategy using options. He buys a stock at €95 and

simultaneously sells a call option with a strike price of €100 for €3.

What is the maximum profit and loss potential for this strategy?

Maximum profit: €5, Maximum

loss: €95

Maximum profit: €8, Maximum loss: €92

Maximum profit: €8, Maximum

loss: €95

Maximum profit: €8, Maximum

loss: Unlimited

None of these answers

A swap

contract is _____.

An exchange of

principal over a certain period of time which is generally due to differences

in the interest rates used.

An exchange of

principal over a certain period of time which is generally due to similarities

in the interest rates used.

An exchange of

cashflow over a certain period of time which is generally due to differences in

the interest rates used.

An exchange of

cashflow over a certain period of time which is generally due to similarities

in the interest rates used.

Which

of the following financial instruments can be classified as "hybrid"

or "mixed"?

None of theses

Treasury bonds

Common stock

Convertible bonds

Preferred stock

What is

the role of credit rating agencies concerning corporate bonds?

They determine the coupon rates for bonds.

They issue bonds on behalf of companies.

They assess and rate the creditworthiness of

bond issuers.

They enforce regulatory

compliance for bond issuers.