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MCQs

Total Questions : 272 | Page 3 of 28 pages
Question 21. If the trading of municipal bonds is infrequent, then secondary market is considered as
  1.    thin markets
  2.    thick markets
  3.    higher underwriting
  4.    lower underwriting
 Discuss Question
Answer: Option A. -> thin markets
Answer: (a).thin markets
Question 22. The difference between face value of the bond and the call price of the bond is considered as
  1.    call premium
  2.    call provision
  3.    discount premium
  4.    discount provision
 Discuss Question
Answer: Option A. -> call premium
Answer: (a).call premium
Question 23. Considering the yields of bonds, the secured bonds as compared to unsecured bonds have
  1.    higher yields
  2.    lower yields
  3.    untimed yields
  4.    termed yields
 Discuss Question
Answer: Option A. -> higher yields
Answer: (a).higher yields
Question 24. The bonds that are considered investment rating bonds are given the rating of
  1.    triple B rating bonds
  2.    double B
  3.    triple A
  4.    double A
 Discuss Question
Answer: Option A. -> triple B rating bonds
Answer: (a).triple B rating bonds
Question 25. IN negotiated sale, the services provided by the investment banks are
  1.    origination services
  2.    document collection services
  3.    advising services
  4.    both a and c
 Discuss Question
Answer: Option D. -> both a and c
Answer: (d).both a and c
Question 26. The auction of the TIPS security is classified as
  1.    premium bid auction
  2.    discount bid auction
  3.    multiple bid auction
  4.    One bid auction
 Discuss Question
Answer: Option D. -> One bid auction
Answer: (d).One bid auction
Question 27. The Eurobonds are placed for buying and selling in primary markets by the
  1.    investment banks
  2.    commercial banks
  3.    euro transfer agencies
  4.    currency deposit banks
 Discuss Question
Answer: Option A. -> investment banks
Answer: (a).investment banks
Question 28. The source of funds for the repayment of municipal bonds is considered as
  1.    local tax and revenue
  2.    global tax and revenue
  3.    print notes
  4.    commercial notes
 Discuss Question
Answer: Option A. -> local tax and revenue
Answer: (a).local tax and revenue
Question 29. The bond holder can make profit by returning the bonds and exchanging with other securities, if market value with conversion value
  1.    exceed non-convertible value
  2.    exceed collateral value
  3.    exceed mortgage value
  4.    exceeds market value of bond
 Discuss Question
Answer: Option D. -> exceeds market value of bond
Answer: (d).exceeds market value of bond
Question 30. The treasury bonds and notes pay the interest rate is classified as
  1.    LIBOR rate monthly
  2.    coupon interest monthly
  3.    coupon interest semiannually
  4.    coupon interest annually
 Discuss Question
Answer: Option C. -> coupon interest semiannually
Answer: (c).coupon interest semiannually

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