1. New property may become subject to a security provision by a(n):
A. acceleration clause.
B. debenture.
C. subordinated debenture.
D. after acquired property clause.
2. The bond yield found by dividing the annual interest payment by the current price of a bond is called the:
A. current yield.
B. Yield to maturity.
C. Approximate yield to maturity.
D. Coupon rate.
3. The appropriate discount rate to use in bond refunding evaluation is the:
A. cost of capital.
B. difference between the old interest rate and the new interest rate on the debt.
C. interest rate of new debt.
D. after-tax rate of the new debt.