The principal amount of a bond that is repaid at the end of


1) The principal amount of a bond that is repaid at the end of the loan term is called _________.

2) _________ plots the yields on bonds relative to maturity.

3) A _________ is an unsecured bond, for which no specific pledge of property is made

4) An unexpected decrease in market interest rates will cause a coupon bond's yield to maturity to ___________.

5) The yield to maturity on a premium bond ____________ the bond's coupon rate.

6) Assume a constant dividend growth. The _________ of a stock equals its capital gains yield.

7) If a firm pays a constant annual dividend, then the capital gains yield is equal to ____.

8) According to the dividend growth model, the required rate of return is equal to the capital gains yield if the dividend growth rate is ______.

9) Assume a constant dividend growth. A decrease in the capital gains yield will ______ the current value of a stock.

10) _______________ can be used to value the stock of firms that pay no dividends.

11) The reward for bearing risk is called the ___________.

12) The higher the risk, the _____ the return.

13) The geometric average return is _____ than the arithmetic average return for a given set of returns.

14) A group of assets held together by an investor is referred to as a __________.

15) Unsystematic risk can also be referred to as asset-specific risk, ________ risk, idiosyncratic risk, or unique risk.

16) ________ refers to the practice of investing in a variety of diverse assets as a means of reducing risk.

17) An unexpected increase in the variable costs for a firm is an example of _____________ risk.

18) An unexpected decrease in corporate tax rates is an example of __________ risk.

19) If a risky security has more risk than the overall market, its beta coefficient is _______ 1.

20) All else constant, an increase in the market value of preferred stock will affect a firm's weighted average cost of capital by changing the ______ of preferred stock.

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Financial Management: The principal amount of a bond that is repaid at the end of
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