Financial Management Mcqs Archives

Reinvestment risk of bonds is higher on__________?

Reinvestment risk of bonds is higher on__________?

A. Short maturity bonds(Correct)
B. High maturity bonds
C. High premium bonds
D. High inflated bonds

Reinvestment risk of bonds is higher on__________? Read More »

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Type of bonds that pays no coupon payment but provides little appreciation are classified as______________?

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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

Type of bonds that pays no coupon payment but provides little appreciation are classified as______________? Read More »

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Bonds issued by small companies tend to have_____________?

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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

Bonds issued by small companies tend to have_____________? Read More »

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Coupon rate of bond is also called____________?

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Coupon rate of bond is also called____________?

A. Nominal rate
B. Premium rate
C. Quoted rate
D. Both a and c

Coupon rate of bond is also called____________? Read More »

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An increasing in interest rate leads to decline in value of__________?

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An increasing in interest rate leads to decline in value of__________?

A. Junk bonds
B. Outstanding bonds(Correct)
C. Standing bonds
D. Premium bonds

An increasing in interest rate leads to decline in value of__________? Read More »

Bonds and Bond Valuation, Finance Mcqs, Financial Management Mcqs

Bonds issued by government and backed by Pak government are classified as_________?

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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

Bonds issued by government and backed by Pak government are classified as_________? Read More »

Bonds and Bond Valuation, Finance Mcqs, Financial Management Mcqs

Value generally promises to pay at maturity date and a firm borrows is considered as bond’s__________?

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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)

Value generally promises to pay at maturity date and a firm borrows is considered as bond’s__________? Read More »

Bonds and Bond Valuation, Finance Mcqs, Financial Management Mcqs

Maturity date decides at time of issuance of bond and legally permissible is classified as____________?

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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

Maturity date decides at time of issuance of bond and legally permissible is classified as____________? Read More »

Bonds and Bond Valuation, Finance Mcqs, Financial Management Mcqs

Bonds issued by local and state governments with default risk are____________?

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Bonds issued by local and state governments with default risk are____________?

A. Municipal bonds(Correct)
B. Corporation bonds
C. Default bonds
D. Zero bonds

Bonds issued by local and state governments with default risk are____________? Read More »

Bonds and Bond Valuation, Finance Mcqs, Financial Management Mcqs

Bond that has been issued in very recent timing is classified as_______?

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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

Bond that has been issued in very recent timing is classified as_______? Read More »

Bonds and Bond Valuation, Finance Mcqs, Financial Management Mcqs