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MCQs

Total Questions : 272 | Page 4 of 28 pages
Question 31. As compared to non-convertible bonds, the yield on the convertible bond is
  1.    relatively lower
  2.    relatively higher
  3.    relatively zero
  4.    relatively discounted
 Discuss Question
Answer: Option A. -> relatively lower
Answer: (a).relatively lower
Question 32. If the revenue bonds becomes default, the bondholders must
  1.    not be paid
  2.    be paid
  3.    be sold
  4.    not be sold
 Discuss Question
Answer: Option B. -> be paid
Answer: (b).be paid
Question 33. The financial instruments such as treasury bonds and notes have
  1.    lesser cost fluctuations
  2.    wider price fluctuations
  3.    less price fluctuations
  4.    wider cost fluctuations
 Discuss Question
Answer: Option B. -> wider price fluctuations
Answer: (b).wider price fluctuations
Question 34. The face value of the bond is $450 and the call price of bond is $250 then the value of call premium is
  1.    0.018
  2.    200
  3.    700
  4.    1.8
 Discuss Question
Answer: Option B. -> 200
Answer: (b).200
Question 35. The interest rate on floating rate Eurobonds is paid
  1.    annually
  2.    semiannually
  3.    monthly
  4.    quarterly
 Discuss Question
Answer: Option B. -> semiannually
Answer: (b).semiannually
Question 36. The junk bonds which are rated lower than triple B are also classified as
  1.    high yield bonds
  2.    low yield bonds
  3.    zero floating bonds
  4.    high floating rate bonds
 Discuss Question
Answer: Option A. -> high yield bonds
Answer: (a).high yield bonds
Question 37. The call premium of bond is subtracted from call price of bond to calculate
  1.    face value of bond
  2.    face value of stock
  3.    book value of stock
  4.    book value of bond
 Discuss Question
Answer: Option A. -> face value of bond
Answer: (a).face value of bond
Question 38. In the financial markets, the separate trading of registered interest and principal securities have abbreviation of
  1.    STORI
  2.    STRIPS
  3.    RIAPS
  4.    STORIAP
 Discuss Question
Answer: Option B. -> STRIPS
Answer: (b).STRIPS
Question 39. The yield on subordinated bonds as compared to non-subordinated bonds is considered as
  1.    highly risky and higher yields
  2.    highly risky and lower yields
  3.    less risky and higher yields
  4.    less risky and lower yields
 Discuss Question
Answer: Option A. -> highly risky and higher yields
Answer: (a).highly risky and higher yields
Question 40. The dimensions in bonds markets are
  1.    treasury notes and bonds
  2.    corporate bonds
  3.    municipal bonds
  4.    all of the above
 Discuss Question
Answer: Option D. -> all of the above
Answer: (d).all of the above

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