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MCQs

Total Questions : 272 | Page 20 of 28 pages
Question 191. An effect of interest rate risk and investment risk on a bond's yield is classified as
  1.    reinvestment premium
  2.    investment risk premium
  3.    maturity risk premium
  4.    defaulter's premium
 Discuss Question
Answer: Option C. -> maturity risk premium
Answer: (c).maturity risk premium
Question 192. The current market price of common stock is $15 and the conversion rate received on conversion is $320 to calculate
  1.    3800
  2.    2800
  3.    4800
  4.    5800
 Discuss Question
Answer: Option C. -> 4800
Answer: (c).4800
Question 193. The bonds that are backed by cash flow from project and are sold to finance particular project are classified as
  1.    finance bonds
  2.    revenue bonds
  3.    financing bonds
  4.    project bonds
 Discuss Question
Answer: Option B. -> revenue bonds
Answer: (b).revenue bonds
Question 194. The type of bonds in which there are many maturity dates and part of issue is paid off at every maturity date is considered as
  1.    pledged bonds
  2.    serial bonds
  3.    series bonds
  4.    parallel bonds
 Discuss Question
Answer: Option B. -> serial bonds
Answer: (b).serial bonds
Question 195. The treasury notes that provide returns tied to inflation rate are classified as
  1.    clean price bonds
  2.    discount index bonds
  3.    premium index bonds
  4.    inflation index bonds
 Discuss Question
Answer: Option D. -> inflation index bonds
Answer: (d).inflation index bonds
Question 196. The bonds having longer maturity on original loans than promised payments are classified as
  1.    developed bonds
  2.    developing bonds
  3.    Brady bonds
  4.    swapped bonds
 Discuss Question
Answer: Option C. -> Brady bonds
Answer: (c).Brady bonds
Question 197. The placement of financial issue in which investment bank and municipality together find the large buyers is classified as
  1.    reserve placement
  2.    federal placement
  3.    private placement
  4.    government placement
 Discuss Question
Answer: Option C. -> private placement
Answer: (c).private placement
Question 198. The treasury bonds are exposed to additional risks and include
  1.    reinvestment risk
  2.    interest rate risk
  3.    investment risk
  4.    both a and b
 Discuss Question
Answer: Option D. -> both a and b
Answer: (d).both a and b
Question 199. If the bond's call provision is practiced in first year of issuance then an additional payment is classified as
  1.    issuance provision
  2.    bond provision
  3.    call provision
  4.    first provision
 Discuss Question
Answer: Option C. -> call provision
Answer: (c).call provision
Question 200. The reinvestment risk of bonds is higher on
  1.    short maturity bonds
  2.    high maturity bonds
  3.    high premium bonds
  4.    high inflated bonds
 Discuss Question
Answer: Option A. -> short maturity bonds
Answer: (a).short maturity bonds

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