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MCQs

Total Questions : 272 | Page 25 of 28 pages
Question 241. The legal contract which states the legal rights of seller and buyer is classified as
  1.    long term indenture
  2.    federal indenture
  3.    private indenture
  4.    bond indenture
 Discuss Question
Answer: Option D. -> bond indenture
Answer: (d).bond indenture
Question 242. The bonds used in purpose of specific projects which are financed by the collateral for issuing bonds are classified as
  1.    indenture bonds
  2.    trustee bonds
  3.    collateral bonds
  4.    mortgage bonds
 Discuss Question
Answer: Option D. -> mortgage bonds
Answer: (d).mortgage bonds
Question 243. If the coupon rate is more than going rate of interest then the bond will be sold
  1.    more than its par value
  2.    seasoned par value
  3.    at par value
  4.    below its par value
 Discuss Question
Answer: Option D. -> below its par value
Answer: (d).below its par value
Question 244. The coupon rate of convertible bond is
  1.    higher
  2.    lower
  3.    variable
  4.    stable
 Discuss Question
Answer: Option B. -> lower
Answer: (b).lower
Question 245. The difference between bond's yield and any other security yield having same maturities is considered as
  1.    maturity spread
  2.    bond spread
  3.    yield spread
  4.    interest spread
 Discuss Question
Answer: Option B. -> bond spread
Answer: (b).bond spread
Question 246. The call provision practiced by the company which states that call price will be paid is classified as
  1.    super refund provision
  2.    super put redemption
  3.    make-whole call provision
  4.    super call provision
 Discuss Question
Answer: Option C. -> make-whole call provision
Answer: (c).make-whole call provision
Question 247. The protective covenant devised in the market to reduce event risk and to control debt cost is classified as
  1.    super poison covenant
  2.    super poison put
  3.    super poison call
  4.    super poison redemption
 Discuss Question
Answer: Option B. -> super poison put
Answer: (b).super poison put
Question 248. The yields of the municipal bonds is
  1.    after tax rate of return
  2.    before tax rate of return
  3.    corporative rate of return
  4.    federal rate of return
 Discuss Question
Answer: Option A. -> after tax rate of return
Answer: (a).after tax rate of return
Question 249. The rate of return on non-callable bonds is $680 and value of issuer option is $450 then the return on callable bond is
  1.    230
  2.    0.0152
  3.    1.52
  4.    1130
 Discuss Question
Answer: Option D. -> 1130
Answer: (d).1130
Question 250. The STRIPS are used effectively to receive
  1.    One set of payment
  2.    Two sets of payments
  3.    Three sets of payments
  4.    Four sets of payments
 Discuss Question
Answer: Option A. -> One set of payment
Answer: (a).One set of payment

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