Advantages of privately placing debt include all of the following EXCEPT
A) speed.
B) reduced placement costs.
C) restrictive covenants.
D) flexibility.
The par value of a bond
A) never equals its market value.
B) is determined by the investor.
C) generally is $1,000.
D) is never returned to the bondholder.
The interest on corporate bonds is typically paid
A) semiannually.
B) annually.
C) quarterly.
D) monthly.
On any given day, a bond can be issued at
A) a discount.
B) a premium.
C) par.
D) all of the above.
Advantages to borrowing in the private market include
A) less restrictive covenants.
B) reduced initial costs.
C) lower interest costs.
D) avoiding future SEC registration.
Corporate debt can be privately placed with
A) union pension funds.
B) life insurance companies.
C) state pension funds.
D) all of the above
Which of the following is generally NOT a characteristic of a bond?
A) Voting rights
B) Par value
C) Claims on assets and income
D) Indenture
