Reinvestment risk of bonds is higher on__________?
B. High maturity bonds
C. High premium bonds
D. High inflated bonds
B. High maturity bonds
C. High premium bonds
D. High inflated bonds
Bonds and Bond Valuation
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Reinvestment risk of bonds is higher on__________? A. Short maturity bonds(Correct)
B. High maturity bonds
C. High premium bonds
D. High inflated bonds -
Type of bonds that pays no coupon payment but provides little appreciation are classified as______________?
Type of bonds that pays no coupon payment but provides little appreciation are classified as______________? A. Depreciated bond
B. Interest bond
C. Zero coupon bond(Correct)
D. Appreciation bond -
Bonds issued by small companies tend to have_____________?
Bonds issued by small companies tend to have_____________? A. High liquidity premium(Correct)
B. High inflation premium
C. High default premium
D. High yield premium -
Coupon rate of bond is also called____________?
Coupon rate of bond is also called____________?A. Nominal rate
B. Premium rate
C. Quoted rate
D. Both a and c -
An increasing in interest rate leads to decline in value of__________?
An increasing in interest rate leads to decline in value of__________? A. Junk bonds
B. Outstanding bonds(Correct)
C. Standing bonds
D. Premium bonds -
Bonds issued by government and backed by Pak government are classified as_________?
Bonds issued by government and backed by Pak government are classified as_________? A. Issued security
B. Treasury bonds(Correct)
C. U.S bonds
D. Return security -
Value generally promises to pay at maturity date and a firm borrows is considered as bond’s__________?
Value generally promises to pay at maturity date and a firm borrows is considered as bond’s__________? A. Bond value
B. Per value
C. State value
D. Par value(Correct) -
Maturity date decides at time of issuance of bond and legally permissible is classified as____________?
Maturity date decides at time of issuance of bond and legally permissible is classified as____________? A. Original maturity(Correct)
B. Permanent maturity
C. Artificial maturity
D. Valued maturity -
Bonds issued by local and state governments with default risk are____________?
Bonds issued by local and state governments with default risk are____________? A. Municipal bonds(Correct)
B. Corporation bonds
C. Default bonds
D. Zero bonds -
Bond that has been issued in very recent timing is classified as_______?
Bond that has been issued in very recent timing is classified as_______? A. Mature issue
B. Earning issue
C. New issue(Correct)
D. Recent issue