B. Guarantee
C. Warrants(Correct)
D. Convertibles
Type of options that permit bond holder to buy stocks at stated price are classified as______?
B. Guarantee
C. Warrants(Correct)
D. Convertibles
Financial Management Mcqs
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_____________?
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__________?
B. Zero bonds
C. Foreign bonds(Correct)
D. Government bonds
Rate of return (in percentages) consists of___________?
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__________?
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_________?
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