Which one of the following statements about vanilla bonds is NOT true?
A) They have no special provisions.
B) The face value, or par value, for most corporate bonds is $1,000.
C) Coupon payments are usually made quarterly.
D) The bond's coupon rate is calculated as the annual coupon payment divided by the bond's face value.
Ans: C) Coupon payments are usually made quarterly.
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In developing the standard economic order quantity formula, the following assumption(s) is (are)
made: A) Lead time is constant. B) Demand for the item is relatively uniform. C) Replenishment is in lots or batches that arrive at once. D) All of the above are assumed. E) None of the above is assumed.
A holder of a U.S. Government bond has a greater certainty of getting back principal and interest
than the holder of a corporate bond. Indicate whether the statement is true or false