Sail E0 Webinar

MCQs

Total Questions : 272 | Page 5 of 28 pages
Question 41. The treasury bills are issued on
  1.    treasury basis
  2.    corporate basis
  3.    premium basis
  4.    discount basis
 Discuss Question
Answer: Option D. -> discount basis
Answer: (d).discount basis
Question 42. The value of option issued to call debt is subtracted from rate of return on callable bond to calculate the rate of return on
  1.    contributed bonds
  2.    non-callable bonds
  3.    callable bonds
  4.    discounted bonds
 Discuss Question
Answer: Option B. -> non-callable bonds
Answer: (b).non-callable bonds
Question 43. The conversion values is $8500 and the conversion rate received on stock conversion is 430 then current market price of stock is
  1.    15.24
  2.    13.24
  3.    20.24
  4.    19.24
 Discuss Question
Answer: Option C. -> 20.24
Answer: (c).20.24
Question 44. The issues sold by investment banks and guarantees the issuer by buying new issue at fixed price is classified as
  1.    index commitment underwriting
  2.    insurance underwriting
  3.    default risk underwriting
  4.    firm commitment underwriting
 Discuss Question
Answer: Option D. -> firm commitment underwriting
Answer: (d).firm commitment underwriting
Question 45. As compared to publicly placed issues, the privately placed bonds are issued for
  1.    lower paid interest rates
  2.    higher paid interest rates
  3.    registered interest rates
  4.    unregistered interest rates
 Discuss Question
Answer: Option B. -> higher paid interest rates
Answer: (b).higher paid interest rates
Question 46. The risk of fall in income due to fall in interest rates in future is classified as
  1.    income risk
  2.    investment risk
  3.    reinvestment risk
  4.    mature risk
 Discuss Question
Answer: Option C. -> reinvestment risk
Answer: (c).reinvestment risk
Question 47. The payment divided by the par value is classified as
  1.    divisible payment
  2.    coupon payment
  3.    par payment
  4.    per period payment
 Discuss Question
Answer: Option B. -> coupon payment
Answer: (b).coupon payment
Question 48. The redemption option which protects investors against rise in interest rate is considered as
  1.    redeemable at deferred
  2.    redeemable at par
  3.    redeemable at refund
  4.    redeemable at finding
 Discuss Question
Answer: Option B. -> redeemable at par
Answer: (b).redeemable at par
Question 49. An official entity that represents the bondholders and ensures the stated rules in indenture is classified as
  1.    trustee
  2.    trust
  3.    stated entity
  4.    owner entity
 Discuss Question
Answer: Option A. -> trustee
Answer: (a).trustee
Question 50. An annual interest payment divided by current price of bond is considered as
  1.    current yield
  2.    maturity yield
  3.    return yield
  4.    earnings yield
 Discuss Question
Answer: Option A. -> current yield
Answer: (a).current yield

Latest Videos

Latest Test Papers