Which of the following statements regarding provisions for paying off bonds is least likely correct（）
A: Nonrefundable bonds can be callable.
B: Serial bonds are an issue with several staggered maturity dates.
C: A sinking fund provision gives the company the option to retire portions of the bond issue prior to maturity.
A: Nonrefundable bonds can be callable.
B: Serial bonds are an issue with several staggered maturity dates.
C: A sinking fund provision gives the company the option to retire portions of the bond issue prior to maturity.
举一反三
- Which of the following provisions provides the most flexibility for the bond issuer A: put provision B: call provision C: sinking fund provision
- Which of the following statements is FALSE? A: The amount of each coupon payment is determined by the coupon rate of the bond. B: Prior to its maturity date, the price of a zero-coupon bond is always greater than its face value. C: The simplest type of bond is a zero-coupon bond. D: Treasury bills are U.S. government bonds with a maturity of up to one year.
- According to the market segmentation theory of the term structure,________ A: the interest rate for bonds of one maturity is determined by supply and demand for bonds of that maturity. B: bonds of one maturity are not substitutes for bonds of other maturities; therefore, interest rates on bonds of different maturities do not move together over time. C: investors' strong preference for short-term relative to long-term bonds explains why yield curves typically slope upward. D: all of the above. E: none of the above.
- Which of the following statements is true? A: Interest on bonds is tax deductible. B: Interest on bonds is not tax deductible. C: Dividends to stockholders are tax deductible. D: Bonds do not have to be repaid. E: Bonds always increase return on equity.
- Which of the following statements about Treasury inflation-indexed bonds is not true?