sell the bonds
decrease
Impossible to really know, but not likely
sellbonds
I'm stuck on a few of these questions:
Use the following scenario to answer the multiple choice questions.
A company issues bonds in order to fund capital expansion, i.e. build a new plant or investing in new machinery. A few months after the company sells its bonds financial filings reveal that the firm's revenue is much less than anticipated.
Would the firm's bonds be perceived as more or less risky?
Which of the following actions would you expect a rational risk-averse investor to take.
sell the bonds, buy more bonds, give the bonds away for free, it depends (can pick more than one)
If you own stock ABC and the Wall Street Journal announces that it failed to meet the earnings expected for the year, would you expect the value of this stock to:
decrease or increase or stay the same
If you read this news on your lunch break at work, would you be able to sell the stock in time to avoid losing money on it? Yes or No?
