Chapter 6

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Chapter 6
2010-03-28 14:49:14
Managerial Finance

Bond Valuation
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  1. Securities that sell for less than their par values
    Discounted Securities
  2. The date on which the principle amount of a debt is due
    Maturity Date
  3. ______ Debt Holders do not have voting rights, therefore they do not have control of the firm
  4. discounted securities issued by the U.S. government to finance operations
    Treasury bills
  5. Types of debt
    • 1. Short-term debt
    • 2. Treasury bills
    • 3. Repurchase Agreement
    • 4. Federal Funds
    • 5. Banker's Acceptance
    • 6. Commercial Paper
    • 7. Certificate of Deposit
    • 8. Eurodollar Deposit
    • 9. Money Market Mutual Funds
    • 10. Long-Term debt
    • 11. Term Loan
    • 12. Bond
  6. An agreement where one firm sells some of its financial assets to another firm with a promise to repurchase the securities at a higher price at a later date.
    Repurchase agreement
  7. Overnight loans from one bank to another
    Fed funds
  8. A postdated check
    bankers acceptance
  9. A type of promissory note, or large IOU, issued by large, financially sound firms
    Commercial paper
  10. A time deposit at a bank or other financial intermediary
    Certificate of Deposit
  11. a deposit in a bank outside the U.S. that is not converted into the currency of the foreign country
    Eurodollar deposit
  12. Money market mutual funds
    investment funds that are pooled and managed by firms that specialize in investing money for others for the purpose of investing in short-term financial assets