Finc 310 Already Passed

IV only {Ans: Convertible bonds are I. options attached to bonds that give the bondholder the right to purchase stock at a preset price without giving up the bond. II. bonds in which the issue matures (converts) a little each year. III. bonds collateralized with certain types of automobiles. IV. bonds that may be converted to a certain number of shares of stock determined by the conversion ratio.}true {Ans: If the stock markets are semi-strong efficient, stock prices reflect all historic and current public information about a firm but prices do not reflect inside information.}taxable at federal level only; exempt from federal taxes {Ans: Interest income from Treasury securities is ________________, and interest income from municipal bonds is always ________________.}true {Ans: A borrower using a conventional mortgage will have to put up at least a 20 percent down payment or purchase private mortgage insurance.}true {Ans: Stock splits change the divisor in a price-weighted index but do not result in any net change in the divisor of a value-weighted index.}negotiable CD is {Ans: bank-issued time deposit}