Posts Tagged ‘business’
Corporate Bonds Secondary Market
April 3rd, 2011
Question: Investing and Market questions! please help! 10 pts!?
1. Investors purchase Corporate Bonds for:
a. interest income.
b. possible increases in value.
c. repayment of the face value at maturity.
d. All of the above are correct.
2. Which one of the following statements is true?
a. A bond sold for less than its face value is said to be sold at a
premium.
b. A bond sold for more than its face value is said to be sold at
a discount.
c. As interest rates in the economy increase, the value of
existing bonds will decrease.
d. There is a direct relationship between a bond's market value
and the overall interest rates in the economy.
3. In the secondary market, most Corporate Bonds are traded:
a. through investment banks.
b. through commercial banks.
c. on the New York and American Bond Exchanges.
d. between the issuing corporation and the investing public.
Answer: D D B
Bailout 3: Book value vs. market value
Posted in List of Corporate Bonds | 
Tags: business, corporate bonds, corporate bonds secondary market, media, news, reuters, world | 
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Corporate Bonds Interest Rates
February 8th, 2011
Question: Why are interest rates for T-bills and corporate bond rates are less correlated?
While for CDs and T-bills, the interest rates are correlated.
Answer: Corporate Bonds are subject to default risk. T-bills are risk free from default. And bank CD's are insured.
Rising Interest Rates and Bonds