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MCQs

Total Questions : 272 | Page 11 of 28 pages
Question 101. The value of conversion option to bond holder is $550 and the rate of return on non-convertible bond is $270 then rate of return on convertible bond is
  1.    0.0204
  2.    2.04
  3.    280
  4.    820
 Discuss Question
Answer: Option C. -> 280
Answer: (c).280
Question 102. The promised payments on the Eurobonds will be paid in the
  1.    currency of denomination
  2.    currency of home country
  3.    currency of Australia
  4.    currency of local market
 Discuss Question
Answer: Option A. -> currency of denomination
Answer: (a).currency of denomination
Question 103. The call premium of bond is $560 and the call price of bond is $340 then face value of the bond is
  1.    1.65
  2.    220
  3.    900
  4.    0.0165
 Discuss Question
Answer: Option B. -> 220
Answer: (b).220
Question 104. The replacement of bearer bonds with registered bonds is because of lack of
  1.    security of indentures
  2.    security of unregistered bonds
  3.    security of bearer bonds
  4.    security of registered bonds
 Discuss Question
Answer: Option C. -> security of bearer bonds
Answer: (c).security of bearer bonds
Question 105. The corporate bonds are also considered as
  1.    trustee bonds
  2.    registered bonds
  3.    unregistered bonds
  4.    indenture bonds
 Discuss Question
Answer: Option B. -> registered bonds
Answer: (b).registered bonds
Question 106. The call premium is $385 and the face value of the bond is $285 then the call price of bonds is
  1.    100
  2.    770
  3.    670
  4.    570
 Discuss Question
Answer: Option B. -> 770
Answer: (b).770
Question 107. In firm commitment underwriting procedure, the more risk is at the side of
  1.    investment bank
  2.    insurance firm
  3.    reissuing firm
  4.    reselling firm
 Discuss Question
Answer: Option A. -> investment bank
Answer: (a).investment bank
Question 108. With the consolidation of currencies, the created liquidity allows the Eurobond
  1.    price and supply to decrease
  2.    price and supply to increase
  3.    demand and size to decrease
  4.    demand and size to increase
 Discuss Question
Answer: Option D. -> demand and size to increase
Answer: (d).demand and size to increase
Question 109. The main trading markets of Eurobonds are
  1.    London and Luxembourg
  2.    Australian markets
  3.    Swiss banks counters
  4.    Asian banks counters
 Discuss Question
Answer: Option A. -> London and Luxembourg
Answer: (a).London and Luxembourg
Question 110. The marginal income tax rate is 46.8% and before tax rate of return is 15.5% then the after tax rate of return is
  1.    0.0725
  2.    0.08246
  3.    0.1025
  4.    0.0925
 Discuss Question
Answer: Option B. -> 0.08246
Answer: (b).0.08246

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