73 Review Questions

Chapter 7 Review Questions

1. What is a junk bond?

 

2. Briefly describe interest income within the context of bond investments.

 

3. Briefly describe the two types of cash flow that a bondholder will receive from the issuer.

 

4. What is an inverted yield curve, and what is its significance?

 

5. Describe reinvestment risk for a bondholder.

 

Attribution:

This chapter is from “Principles of Finance”  https://openstax.org/books/principles-finance/pages/1-why-it-matters by Dahlquist and Knight. This book is licensed under the CC-BY 4.0 license. 2022 OpenStax.

License

Icon for the Creative Commons Attribution-ShareAlike 4.0 International License

PPSC FIN 2010 Principles of Finance by Cristal Brietbeil and Eric Schroeder is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License, except where otherwise noted.

Share This Book