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MCQs

Total Questions : 272 | Page 24 of 28 pages
Question 231. The face value of the bond is $550 and the call price of bond is $475 then the value of call premium is
  1.    1.16
  2.    1025
  3.    75
  4.    0.0116
 Discuss Question
Answer: Option C. -> 75
Answer: (c).75
Question 232. The treasury security in which the final principal payment is separated from periodic interest payment is classified as
  1.    STRIP
  2.    separated security
  3.    inflated security
  4.    coupon paid security
 Discuss Question
Answer: Option A. -> STRIP
Answer: (a).STRIP
Question 233. The sum of purchase price and the accrued interest on treasury bonds and notes is considered as
  1.    dirty price
  2.    clean price
  3.    paid price
  4.    unpaid price
 Discuss Question
Answer: Option A. -> dirty price
Answer: (a).dirty price
Question 234. The requirement of certain amount of issued bond that must be retired every year is classified as
  1.    sinking fund provision
  2.    sinking fund premium
  3.    sinking fund discount
  4.    floating fund provision
 Discuss Question
Answer: Option A. -> sinking fund provision
Answer: (a).sinking fund provision
Question 235. According to best efforts offering, the investment bank in return of providing services must
  1.    not receive fee
  2.    receive fee
  3.    receive interest rate
  4.    receive market rate of return
 Discuss Question
Answer: Option B. -> receive fee
Answer: (b).receive fee
Question 236. The type of bonds that are swapped to less developed country against an outstanding loan are classified as
  1.    Brady bonds
  2.    swapped bonds
  3.    developed bonds
  4.    developing bonds
 Discuss Question
Answer: Option A. -> Brady bonds
Answer: (a).Brady bonds
Question 237. In the capital markets, the instruments which are traded having maturity of more than one year is classified as
  1.    contraction mortgages
  2.    bonds and mortgages
  3.    expansion bonds
  4.    expansion mortgages
 Discuss Question
Answer: Option B. -> bonds and mortgages
Answer: (b).bonds and mortgages
Question 238. The municipal bonds are more considerable to
  1.    full price investors
  2.    household investors
  3.    corporation investors
  4.    clean price investors
 Discuss Question
Answer: Option B. -> household investors
Answer: (b).household investors
Question 239. The Eurobonds are denominated in only one currency which is
  1.    Canadian dollars
  2.    us dollars
  3.    Euros
  4.    Japanese yen
 Discuss Question
Answer: Option C. -> Euros
Answer: (c).Euros
Question 240. The Eurobonds are traded in
  1.    only in issuing country
  2.    stagnant exchange
  3.    telephonic market
  4.    over the counter market
 Discuss Question
Answer: Option D. -> over the counter market
Answer: (d).over the counter market

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