Type of options that permit bond holder to buy stocks at stated price are classified as______?
B. Guarantee
C. Warrants(Correct)
D. Convertibles
B. Guarantee
C. Warrants(Correct)
D. Convertibles
Bonds and Bond Valuation
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Type of options that permit bond holder to buy stocks at stated price are classified as______? A. Provision
B. Guarantee
C. Warrants(Correct)
D. Convertibles -
An interest rate which is used in calculation of cash flows of bonds is called______________?
An interest rate which is used in calculation of cash flows of bonds is called______________?A. Required rate of redemption
B. Required rate of earning
C. Required rate of return
D. Required option -
If market interest rate rises above coupon rate, then bond will be sold_____________?
If market interest rate rises above coupon rate, then bond will be sold_____________? A. Equal to return rate
B. Seasoned price
C. Below its par value(Correct)
D. Above its par value -
Type of bonds that are issued by foreign governments or foreign corporations are classified as__________?
Type of bonds that are issued by foreign governments or foreign corporations are classified as__________? A. Zero risk bonds
B. Zero bonds
C. Foreign bonds(Correct)
D. Government bonds -
Rate of return (in percentages) consists of___________?
Rate of return (in percentages) consists of___________? A. Capital gain yield interest yield(Correct)
B. Return yield + stable yield
C. Return yield + unstable yield
D. Par value + market value -
If market interest rate falls below coupon rate then bond will be sold__________?
If market interest rate falls below coupon rate then bond will be sold__________? A. Below its par value
B. Above its par value(Correct)
C. Equal to return rate
D. Seasoned price -
Yield of interest rate which is below than coupon rate, this yield is classified as_________?
Yield of interest rate which is below than coupon rate, this yield is classified as_________? A. Yield to maturity
B. Yield to call(Correct)
C. Yield to earning
D. Yield to investors -
An effect of interest rate risk and investment risk on a bond’s yield is classified as_________?
An effect of interest rate risk and investment risk on a bond’s yield is classified as_________?A. Reinvestment premium
B. Investment risk premium
C. Maturity risk premium
D. Defaulter’s premium -
Coupon payment is calculated with help of interest rate, then this rate considers as________?
Coupon payment is calculated with help of interest rate, then this rate considers as________?A. Payment interest
B. Par interest
C. Coupon interest
D. Yearly interest rate -
Coupon payment of bond which is fixed at time of issuance____________?
Coupon payment of bond which is fixed at time of issuance____________?A. Remains same
B. Becomes stable
C. Becomes change
D. Becomes low