If interest rate falls, which of the following statements is true?
A. Callable bonds price rises more slowly than that of a noncallable but otherwise identical bond.
B. Value of call option embedded in the callable bond falls.
Callable bonds price rises faster than that of a noncallable but otherwise identical bond.
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An analyst is checking the information from his two clients William and Robert. William has been retired and is primarily concerned with achieving an investment return no less than the rate of inflati
A. Current income Capital appreciation
B. Capital preservation Total return
Capital preservation Capital appreciation
Which classification of hedge funds is least likely to use a short position in stock as a part of its strategy?
A. Market-neutral funds
B. Distressed securities funds
C. Emerging-market funds
During a period of declining prices, a company using the LIFO inventory method instead of FIFO would most likely report:
A. Higher current assets and lower gross income
B. Higher current assets and higher gross income
C. Lower current assets and lower gross income
Which of the following will most likely have the least impact on a corporate bond rating?
A. The companys liquidity provision.
B. The companys debt burden provision.
C. The companys volume of gross revenue.