1) Bond indentures include restrictive covenants. These provisions protect the bondholders against ________.

A) increase in inflation rate

B) increase in borrower's risk

C) decrease in liquidity risk

D) maturity risk

2) Stock purchase warrants are instruments that give their holders ________.

A) the obligation to purchase a certain number of shares of the issuer's common stock at a specified price over a certain period of time

B) the right to purchase a certain number of shares of the issuer's common stock at a specified price over a certain period of time

C) the obligation to sell a certain number of shares of the issuer's preferred stock at a specified price over a certain period of time

D) the right to sell a certain number of shares of the issuer's preferred stock at a specified price over a certain period of time

3) Bonds which sell at less than face value are priced at a ________, while bonds which sell at greater than face value sell at a ________.

A) par; premium B) discount; par C) discount; premium D) coupon; premium.