(solution) The legal contract setting forth the terms and provisions of a

(solution) The legal contract setting forth the terms and provisions of a

The legal contract setting forth the terms and provisions of a corporate bond is a(n)

indenture

debenture

loan document

promissory note

The ________ are sometimes referred to as the residual owners of the corporation.

preferred stockholders

unsecured creditors

common stockholders

secured creditors

What is the nominal rate of return on an IBM bond if the real rate of interest is 3 percent, the inflation risk premium is 2 percent, the U.S. T-bill rate is 5 percent, the maturity risk premium on the IBM bond is 3 percent, the default risk premium on the IBM bond is 2 percent, and the liquidity risk premium on the bond is 1 percent?

16%

13%

11%

9%

The legal contract setting forth the terms and provisions of a corporate bond is a(n)
indenture
debenture
loan document
promissory note
The ________ are sometimes referred to as the residual owners…