Coupon rate of convertible bond is_________?
A. Higher
B. Lower
C. Variable
D. Stable
MCQs / Q&A
An annual interest payment divided by current price of bond is considered as_____________?
An annual interest payment divided by current price of bond is considered as_____________?
A. Current yield
B. Maturity yield
C. Return yield
D. Earning yield
Payment divided by par value is classified as______________?
Payment divided by par value is classified as______________?
A. Divisible payment
B. Coupon payment
C. Par payment
D. Per period payment
Treasury bonds are exposed to additional risks that are included________?
Treasury bonds are exposed to additional risks that are included________?
A. Reinvestment risk
B. Interest rate risk
C. Investment risk
D. Both A and B
Bonds that have high liquidity premium are usually have_________?
Bonds that have high liquidity premium are usually have_________?
A. Inflated trading
B. Default free trading
C. Less frequently traded
D. Frequently traded
Falling interest rate leads change to bondholder income which is__________?
Falling interest rate leads change to bondholder income which is__________?
A. Reduction in income
B. Increment in income
C. Matured income
D. Frequent income
Bonds issued by corporations and exposed to default risk are classified as_________?
Bonds issued by corporations and exposed to default risk are classified as_________?
A. Corporation bonds
B. Default bonds
C. Risk bonds
D. Zero risk bonds
A type of project whose cash flows would not depend on each other is classified as______________?
A type of project whose cash flows would not depend on each other is classified as______________?
A. Project net gain
B. Independent projects
C. Dependent projects
D. Net value projects
Net present value, profitability index, payback and discounted payback are methods to______________?
Net present value, profitability index, payback and discounted payback are methods to______________?
A. Evaluate cash flow
B. Evaluate projects
C. Evaluate budgeting
D. Evaluate equity
Cash inflows are revenues of project and are represented by__________?
Cash inflows are revenues of project and are represented by__________?
A. Hurdle number
B. Relative number
C. Negative numbers
D. Positive numbers