Module 6: Multi-affirmative Questions

For students

Last updated: 10/10/2025 15:39

The questions are based on or inspired by the following references:

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📘 Part 1 (until Midterm)

Module Chapter Slides T/F MCQ Numeric Long Self-quiz
6 ch23 🎞️ ✅ ❓ 🔢 📝 🧪

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Q1.

Consider the following statements about corporate bonds: I. Corporate bonds are always risk-free investments.
II. Bondholders have a prior claim over shareholders in bankruptcy.
III. Debentures are a type of unsecured corporate debt.






Q2.

Q2. Regarding debt covenants, evaluate the following statements:

  1. Covenants are contractual clauses that restrict the borrower’s behavior.
  2. They are primarily designed to protect shareholders from management.
  3. Violating a covenant can trigger default or renegotiation. 
<label><input type="radio" name="module6_multi_q002" value="A"> A) I only</label><br>
<label><input type="radio" name="module6_multi_q002" value="B"> B) II only</label><br>
<label><input type="radio" name="module6_multi_q002" value="C"> C) I and III only</label><br>
<label><input type="radio" name="module6_multi_q002" value="D"> D) All of the above</label><br>
<label><input type="radio" name="module6_multi_q002" value="E"> E) None of the above</label>
Q3.

Q3. Consider the following statements about bond ratings:

  1. Higher-rated bonds have lower credit risk.
  2. Rating agencies assess the probability of default.
  3. Investment-grade bonds are typically rated below BBB-. 
<label><input type="radio" name="module6_multi_q003" value="A"> A) I only</label><br>
<label><input type="radio" name="module6_multi_q003" value="B"> B) II only</label><br>
<label><input type="radio" name="module6_multi_q003" value="C"> C) I and II only</label><br>
<label><input type="radio" name="module6_multi_q003" value="D"> D) I and II only</label><br>
<label><input type="radio" name="module6_multi_q003" value="E"> E) None of the above</label>
Q4.

Q4. Evaluate the following about debt issuance:

  1. Public debt issuance requires registration with a regulatory authority.
  2. Private placements are typically more liquid than public bonds.
  3. Underwriters help in pricing and selling the bond issue. 
<label><input type="radio" name="module6_multi_q004" value="A"> A) I and II only</label><br>
<label><input type="radio" name="module6_multi_q004" value="B"> B) I and III only</label><br>
<label><input type="radio" name="module6_multi_q004" value="C"> C) II and III only</label><br>
<label><input type="radio" name="module6_multi_q004" value="D"> D) All of the above</label><br>
<label><input type="radio" name="module6_multi_q004" value="E"> E) None of the above</label>
Q5.

Q5. Consider the following statements about sovereign debt:

  1. Sovereign debt is issued by private corporations.
  2. Countries may default on sovereign debt under financial stress.
  3. Sovereign bonds are risk-free because governments can print money. 
<label><input type="radio" name="module6_multi_q005" value="A"> A) I and II only</label><br>
<label><input type="radio" name="module6_multi_q005" value="B"> B) II and III only</label><br>
<label><input type="radio" name="module6_multi_q005" value="C"> C) II only</label><br>
<label><input type="radio" name="module6_multi_q005" value="D"> D) All of the above</label><br>
<label><input type="radio" name="module6_multi_q005" value="E"> E) None of the above</label>

Group 1 of 20

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