Series 65: Exercise

Exercise

Answer True or false

1. 1. True or false. A bond’s coupon rate depends on the creditworthiness of the issuer.
2. 2. True or false. A ratings agency is hired by a potential investor, a transfer agent, or a broker-dealer to assess the creditworthiness of a bond issue.
3. 3. True or false. The Tax Equity and Fiscal Responsibility Act of 1982 prohibited the further issuance of registered bonds.
4. 4. True or false. When book-entry bonds are held in street name, the beneficial owner is the broker-dealer.
5. 5. True or false. All else equal, an investor would rather own a callable bond rather than a bond with a put feature, because the coupon rate is higher.

Answers

1. 1. True. The coupon rate depends on the creditworthiness of the bond, which depends on the creditworthiness of the iss