Finance MCQs

1052 MCQs  (Page 50 of 106)

Bonds issued by local and state governments with default risk are____________?
A. Municipal bonds
B. Corporation bonds
C. Default bonds
D. Zero bonds
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_____________?
A. Equal to return rate
B. Seasoned price
C. Below its par value
D. Above its par value
If market interest rate falls below coupon rate then bond will be sold__________?
A. Below its par value
B. Above its par value
C. Equal to return rate
D. Seasoned price
Rate of return (in percentages) consists of___________?
A. Capital gain yield interest yield
B. Return yield + stable yield
C. Return yield + unstable yield
D. Par value + market value
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
Yield of interest rate which is below than coupon rate, this yield is classified as_________?
A. Yield to maturity
B. Yield to call
C. Yield to earning
D. Yield to investors
Coupon payment of bond which is fixed at time of issuance____________?
A. Remains same
B. Becomes stable
C. Becomes change
D. Becomes low