Financial Questions (Part 2)...need assistance.?

4. Which of the following statements is most correct?





a. A closed-end mortgage bond is one that allows the same assets to be used as security in future bond issues.





b. Positive covenants in a trust indenture restrict or limit the actions the firm can take.





c. Retractable bonds can be redeemed prior to maturity by the firm.





d. Most of the annual funds raised from security issues come from corporate bond sales.





5. Because of portfolio effect, the most significant factor related to the risk of any investment is its:





a. standard deviation





b. coefficient of variation





c. effect on the risk of the portfolio





d. unsystematic risk





6. Which of the following statements is false?





a. More frequent compounding results in additional return on the investment.





b. An amortized loan is repaid in equal payment over a specified time period.





c. The effective annual rate is determined by multiplying the interest rate charged per period by the number of periods in a year.





d. All is true

Financial Questions (Part 2)...need assistance.?
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