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問題一覧
1
is basically a debt or loan.
bond
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is the most common bemchmark used for investment in stocks listed in the Philippine Stock Echange.
philippine stock exchange index
3
percentage of the face amount paid at regular intervals.
coupon
4
is the process of allocating investments in a way that reduces the exposure to any one particular asset or risk
diversification
5
Philippine Stock Exchange
for equities
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option of the invester to sell to issuer at specified price and date or period in the future.
put option
7
when a bond is first issued, bondholder pays at cost.
bond at cost
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what is the intentions? income supplement, education of children, family home, retirement.
goals based investing
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risk associated with losses afising from exposure to foreign currency denominated assets.
currency risk
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the purchase of goods that are not consumed today bit are used in the future to create wealth.
Investments
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On issue date, bondholders purchase the bond typically at deep discounts to the bond face value.
zero bond
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gives holder the right but obligation to buy or sell a security at specified price in the future.
options
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risk that the actions of sovereign government or independent events (war,riots,etc.) may affect the ability of issuers in that country to pay off their debts.
sovereign risk
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a collection of various securities that exhibit similar traits as well as comparable responses to the market fluctuation.
asset classes
15
the date on which a debt becomes due for payment
maturity
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On issue date, bondholders purchases the bond at face value.
regular bond
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the action or process of investing money for profit or material result.
Investments
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a bond that is currently trading for less that its par value in the secondary market.
bond price at a discount
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When interest rates rise, bond prices fall
true
20
is a type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.
stock
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the issuer will delay or not pay the interest and or principal. - type of risk
credit risk
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periodic interest payment mafe to the bondholder during the life of the bond.
coupon
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amount to be repaid to the investors at maturity.
principal
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securities that derive/base their value on the value of another security.
derivatives
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the broker/dealer will commit error,fraud, or financial failure- type of risk
counterparty risk
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is an instrument tjat allows governments, companies, and otjer types of issuers to borrow money from investors.
fixed income security
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Does not pay periodic coupon interest payments. Instead, bondholders merely receive the face value of the bond when it reaches maturity.
zero bond
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a monetary asset purchased with the idea that the asset will provide income in the future or will later be sold at a higher price for a profit.
Investments
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risk associated with the possibility of having lower returns on earnings when maturing placements or the interest earnings are reinvested
reinvestment risk
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what does it imply when you own a stock
ownership
31
the date of time which the debt instrument is outstanding.
term
32
the potential for higher income is always accompanied by higher probabilities of loss.
True
33
when you need the cash
horizon matching
34
lower limit to download adjustments in coupon rates for floating rate bonds/notes.
interest rate floor
35
Different types of Classes
cash and money market instruments, fixed income, equity, alternative investments
36
risk that comes from changes in the prices of assets due to events that affect the overall market.
market risk
37
the investor will not be able to liquidate or convert or sell his asset for cash- type of risk.
liquidity risk
38
When interest rates fall, bond prices rise.
true
39
Philippine Dealing and Exchange (PDex)
for bonds
40
are coupons dividends/maturities enough to meet cash liabilities
cash flow matching
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fixes/guarantees the price of a security for future transaction.
forwards/futures
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Pays coupon interest to bondholders until maturity.
regular bond
43
the value of securities will fall due to changes in interest rates.
interest rate risk
44
automatic adjustment of coupin rates if bond is not redeemed on a certain date.
step up rates
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entity who is offering bonds for sale to investors (e.g. government entities and corporations); responsible for committed payments of the investment contract.
issuer
46
a bond that is trading above its par value in the secondary market.
bond at a premium