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Corporate Finance Exam 2

Terms in this set (14)

The Fed tends to lower interest rates during this business cycle.
A Recession
The issuer may recall these bonds at its choosing
A callable bond
As risk increases, this also increases
Required rate of return
These are owners of the corporation and elect the directors
Stockholders
Because the maturity risk is normally positive this is normally upward sloping.
The Yield Curve
This happens to the yield when bond prices increase.
A yield decrease.
This happens when a corporate bond rating is improved.
A price increase or yield decrease
This is an electronic stock exchange
The NASDAQ
These are mostly traded over the counter
Bonds
These are high risk, high yield debt instruments
Junk Bonds
The market price of the stock multiplied by the number of shares outstanding
Market Cap
The value a bond will pay at maturity
Par Value
This happens to the market yield when a bondholder learns that payout of a bond is at a higher risk.
An increase
These were over 14% in the early 1980's
Mortgage rates
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