首页
外语
计算机
考研
公务员
职业资格
财经
工程
司法
医学
专升本
自考
实用职业技能
登录
外语
The original issuer of a security is referred to as a borrower, and the purchaser is referred to as a lender. Most securities tr
The original issuer of a security is referred to as a borrower, and the purchaser is referred to as a lender. Most securities tr
admin
2011-01-26
75
问题
The original issuer of a security is referred to as a borrower, and the purchaser is referred to as a lender. Most securities traded in the secondary markets belong to one of two broad classifications: bonds or stocks. Bonds are credit instruments redeemable in a given number of dollars and yielding a fixed return. Important characteristics of bonds include face (or par) value, maturity date, and coupon rate. Face values for most bonds are 5; 1 000, although some government issues have $ 10 000 face values. Face value represents the total amount of cash payable to the owner at the bond’s maturity date, which can range from 1 to 30 years. Prior to maturity, yearly coupon payments equal to the coupon rate times the face value are paid. These coupons represent a profit to the bond owner. Coupon rates on newly issued bonds closely follow the level of interest rates in the economy. Once set in the initial primary market sale, however, the coupon on a given issue will not change in response to changing interest rates in the economy. Instead, the market price of the bond changes. When a bond’s coupon rate is equal to the general level of interest rates prevailing in the economy, the bond’s market price will be equal to its face value. When the coupon rate is higher than prevailing interest rates, the bond will sell at a premium over its face value. When the coupon rate is lower than prevailing interest rates, the bond will sell at a discount from its face value. Interest on bonds constitutes a legal obligation, and failure to pay it may result in bankruptcy.
Preferred stocks are similar to bonds in that they have stated face values (often 100) and a specified dividend payment (similar to a bond’s coupon). They differ from bonds because they do not have a scheduled maturity date and because yearly dividends may remain unpaid for a few years without forcing the issuer into bankruptcy. Common stocks have no specified yearly cash payments or maturity date. These securities have an infinite life on which cash will be earned only if the issuer has satisfactory profits. Because the cash returns on bonds are the most certain, they are viewed as the least risky investment and provide the lowest expected rate of return. Preferred stocks are viewed as more risky than bonds and less risky than common stocks. Common stocks are the most risky and provide the largest expected returns.
Preferred stocks are similar to bonds except that ______.
选项
A、they don’t have face value.
B、they don’t have interest.
C、they don’t have maturity date.
D、they don’t have a scheduled maturity date and dividends may remain unpaid for a long time.
答案
D
解析
转载请注明原文地址:https://kaotiyun.com/show/CVYd777K
0
初级(银行综合类)
原金融专业英语(FECT)
金融英语(FECT)
相关试题推荐
Itwastwoweeksbeforechristmas,andMrs.Smithwasverybusy.She41alotofchristmascardstosendtoherfriendsandher
EveryTuesday,Carinagoestoworkinabank.Sheknowsallhercustomers(顾客)verywell,becausetheyareherclassmates.Infact
ThefollowingarethesummarizedfinancialstatementsofMr.Wong’sbusinessfortheyearsended31December2002and2003respe
Undertruelease,thecompanyorthebankwillholdthetitletothefacilities,receivetaxcreditifthereisany,sellfacili
SupposeQD=100-2P,andQS=-50+3P.(a)Whatistheoriginalmarketequilibriumpriceandquantity?(b)Thegovernmentimposesatax
Tofinancethenationaldebt,thegovernmentissuesavarietyofdebtsecurities.ThemostwidelyheldliquidsecurityistheTr
Single,butnotlevelThe1992programmeisgoingtorunabitlatefortheEuropeanCommunity’sfinancialservicescompanie
CommercialbanksinChinatodayhavebroadenedtheirscopeofbusinesstoincludedeposittaking,internationalsettlement,fina
Thewhollystate-ownedcommercialbanksinChinatodayusedtobeknownasstateownedspecializedbanks.
随机试题
在三效顺流蒸发大生产中,二效压力升高,则意味着()加热室结垢,需要进行清洗。
A、正黏病毒科B、剐黏病毒科C、小RNA病毒科D、呼肠病毒科E、冠状病毒科SARS病毒属于
对某酒店内的自动喷水灭火系统检测的下列结果,不符合《自动喷水灭火系统施工及验收规范》(GB50261)的是()。
下列关于房产税的说法中,正确的是()。
在特别任务法的培训任务中,委员会或初级董事会是为()提供的。
市场体系的三大支柱是()。
小明1995年的年龄是他出生那年的年份的数字之和。问:小明1995年多少岁?()
似动是指在一定的时间和空间条件下,人们在静止的物体间看到了运动,或者在没有连续位移的地方,看到了连续位移。 根据上述定义,下列选项不属于似动现象的是:
下列地理现象与太阳活动无关的是()。
AttheentrancetoabigofficeinLondon,therewasapieceofpaperwhichallmenhadtowritenamesonwhentheyarrivedeach
最新回复
(
0
)