Finance MCQs

1052 MCQs  (Page 49 of 106)

Reinvestment risk of bonds is higher on__________?
A. Short maturity bonds
B. High maturity bonds
C. High premium bonds
D. High inflated bonds
In large expansion programs, increased riskiness and flotation cost associated with project can cause_______________?
A. Rise in marginal cost of capital
B. Fall in marginal cost of capital
C. Rise in transaction cost of capital
D. Rise in transaction cost of capital
Coupon rate of bond is also called____________?
A. Nominal rate
B. Premium rate
C. Quoted rate
D. Both a and c
Bonds issued by small companies tend to have_____________?
A. High liquidity premium
B. High inflation premium
C. High default premium
D. High yield premium
An increasing in interest rate leads to decline in value of__________?
A. Junk bonds
B. Outstanding bonds
C. Standing bonds
D. Premium bonds