Sail E0 Webinar

MCQs

Total Questions : 272 | Page 2 of 28 pages
Question 11. The type of bonds that are issued by foreign governments or foreign corporations are classified as
  1.    zero risk bonds
  2.    zero bonds
  3.    foreign bonds
  4.    government bonds
 Discuss Question
Answer: Option C. -> foreign bonds
Answer: (c).foreign bonds
Question 12. An usage of proceeds of new issue to retire issue with high-rate is classified as
  1.    refunding operation
  2.    funding operation
  3.    proceeds operation
  4.    deferred operation
 Discuss Question
Answer: Option A. -> refunding operation
Answer: (a).refunding operation
Question 13. The rate of return (in percentages) consists of
  1.    capital gain yield interest yield
  2.    return yield + stable yield
  3.    return yield + instable yield
  4.    par value + market value
 Discuss Question
Answer: Option A. -> capital gain yield interest yield
Answer: (a).capital gain yield interest yield
Question 14. The specific day at which bond value is repaid can be considered as
  1.    valued date
  2.    repayment date
  3.    payment date
  4.    maturity date
 Discuss Question
Answer: Option D. -> maturity date
Answer: (d).maturity date
Question 15. If the default probability is zero and the bond is not called then the yield to maturity is
  1.    mature expected return rate
  2.    lower than expected return rate
  3.    higher than expected return rate
  4.    equal to expected return rate
 Discuss Question
Answer: Option D. -> equal to expected return rate
Answer: (d).equal to expected return rate
Question 16. The reinvestment risk of bond's is usually higher on
  1.    income bonds
  2.    callable bonds
  3.    premium bonds
  4.    default free bonds
 Discuss Question
Answer: Option B. -> callable bonds
Answer: (b).callable bonds
Question 17. The yield of interest rate which is below than coupon rate, this yield is classified as
  1.    yield to maturity
  2.    yield to call
  3.    yield to earnings
  4.    yield to investors
 Discuss Question
Answer: Option B. -> yield to call
Answer: (b).yield to call
Question 18. If market interest rate fells below the coupon rate then the bond will be sold
  1.    below its par value
  2.    above its par value
  3.    equal to return rate
  4.    seasoned price
 Discuss Question
Answer: Option B. -> above its par value
Answer: (b).above its par value
Question 19. The market in which bonds are traded over-the-counter than in an organized exchange is classified as
  1.    organized markets
  2.    trade markets
  3.    counter markets
  4.    bond markets
 Discuss Question
Answer: Option D. -> bond markets
Answer: (d).bond markets
Question 20. An inflation rate including in quoted interest rate on security, is the inflation rate
  1.    expected over security life
  2.    expected at deferred call
  3.    at bond issuance
  4.    expected at time of maturity
 Discuss Question
Answer: Option A. -> expected over security life
Answer: (a).expected over security life

Latest Videos

Latest Test Papers