(TCO7) What is the primary risk that a bond holder faces?

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FIN 385 Fixed Income Securities and Credit Analysis Week 6 Quiz Answers

 

1. Question: (TCO7)What is the primary risk that a bond holder faces? 

(TCO7) To calculate a bond's duration,you must________. 

(TCO7) Which statement is true about immunization? 

(TCO7) Convexity of a bond refers to_______. 

(TCO7) Passive bond managers prefer to______. 

(TCO9) The dividend growth model to determine expected returns on common stock makes use of all but which of the following? 

(TCO9) Since it's difficult to forecast projected dividend growth to use in the dividend discount formula, a common practice would be to _______. 

(TCO9) The capital structure weights in applying the WACC formula come from _______. 

(TCO9) Away of still using the WACC formula approach for a project in which risk differs from that of the overall company is to _______. 

(TCO 9) The impact of flotation costs on the cost of capital is to 

(TCO 9) Since it's difficult to forecast projected dividend growth to use in the dividend discount formula, a common practice would be to ________. 

(TCO 9) Which is true about the cost of preferred stock in WACC calculations?