BUSN 380 help Making Decisions/uophelp.com BUSN 380 help Making Decisions/uophelp.com | Page 72

Dividend payments may not be reduced or omitted at any time.
Corporate dividends may not always be paid in cash.
Question 15. 15. (TCO 5) What is the approximate market value for a
$1,000 corporate bond that pays 7% interest when comparable bonds are
paying 8% interest?
$800
$875
$70
$1,142
$1,000
Question 16. 16. (TCO 5) The _____ is the financially independent firm
or individual that acts as the bondholders' representative.
trustee
president of the corporation
debenture holder
indenture holder
chairman of the board
Question 17. 17. (TCO 5) A _____ bond is unsecured and gives
bondholders a claim secondary to that of other designated bondholders
with respect to both income and assets.
subordinated debenture
mortgage
debenture
preemptive
Treasury