People

For each of Questions 1 - 50 below, indicate whether the statement is True or False

1. A ‘callable’ bond is one that can be sold on pre-determined term at the option of the bond investor some time prior to bond maturity. | |

2. An ordinary annuity of $100 per year for 20 years involves a constant stream of $100 receipts, with the first receipt occurring at the end of 12 months, and the last one at the end of 240 months. | |

3. A primary offering of stock in an IPO raises net proceeds for existing (pre-listing) shareholders selling-off shares. | |

4. The Hang Seng Indexes Co. Ltd.’s “Hang Seng China-Affiliated Corporations Index” is an index for H- share issuers (see http://www.hsi.com.hk/ ). | |

5. The Hang Seng Indexes Co. Ltd.’s “Hang Seng China Enterprises Index’ is an index for ‘Red-Chip’ stock issuers (see http://www.hsi.com.hk/ ). | |

6. Initial public offerings are examples of ‘unseasoned’ stock offerings | |

7. After completion of a stock split, the issued share capital (ISC) account ledger balance of the issuer (equal to the product of the total number of shares in issue and the shares’ par value) remains unchanged. | |

8. A bond issued by company COM, which is exchangeable at the discretion of the creditor into shares in company F, which are held as financial assets by COM, is a convertible bond (rather than an exchangeable bond). | |

9. In the case of a three-year pure discount bond (i.e., a zero coupon bond) with asking price of $95 (per $100 bond face value), the three-year spot rate relevant to the pricing of the bond would also represent the bond’s yield to maturity. | |

10. The three-year spot rate in the above is 2.45% per annum (as rounded to two decimal places). | |

11. A cumulative preference share is one where if a dividend is not paid in a given period, the dividend claim can be added on to a later period's dividend claim. | |...