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MCQs

Total Questions : 131 | Page 6 of 14 pages
Question 51. In expected rate of return for constant growth, the stock price must grow according to an expected rate and
  1.    at same price
  2.    at different price
  3.    at yielded price
  4.    at buying price
 Discuss Question
Answer: Option A. -> at same price
Answer: (a).at same price
Question 52. The type of bonds that pay coupon interest are classified as
  1.    forward bond
  2.    payment bonds
  3.    coupon bond
  4.    interest bonds
 Discuss Question
Answer: Option C. -> coupon bond
Answer: (c).coupon bond
Question 53. The bonds that does not pay any interest rate are considered as
  1.    interest free bond
  2.    zero coupon bond
  3.    price less coupon bond
  4.    useless price bonds
 Discuss Question
Answer: Option B. -> zero coupon bond
Answer: (b).zero coupon bond
Question 54. For an investment, the weighted average time to maturity is considered as
  1.    premium time
  2.    standard time
  3.    mean time
  4.    duration
 Discuss Question
Answer: Option D. -> duration
Answer: (d).duration
Question 55. The type of bond whose present value is lesser than that of its face value is classified as
  1.    discount bond
  2.    premium bond
  3.    coupon bond
  4.    interest bonds
 Discuss Question
Answer: Option A. -> discount bond
Answer: (a).discount bond
Question 56. For given change in interest rates, the percentage change in the present value of bond is classified as
  1.    price sensitivity
  2.    yield sensitivity
  3.    maturity sensitivity
  4.    premium sensitivity
 Discuss Question
Answer: Option A. -> price sensitivity
Answer: (a).price sensitivity
Question 57. In zero coupon bonds, the impact of lower duration on maturity is that
  1.    maturity will be higher
  2.    maturity will be lower
  3.    maturity will be zero
  4.    maturity will be elastic
 Discuss Question
Answer: Option A. -> maturity will be higher
Answer: (a).maturity will be higher
Question 58. The type of bond for which the bonds present value is greater than bonds face value is classified as
  1.    coupon bond
  2.    interest bonds
  3.    discount bond
  4.    premium bond
 Discuss Question
Answer: Option D. -> premium bond
Answer: (d).premium bond
Question 59. The interest rate that investors receive on financial security to calculate fair value of security is classified as
  1.    forward rate of return
  2.    unturned rate of return
  3.    required rate of return
  4.    termed rate of return
 Discuss Question
Answer: Option C. -> required rate of return
Answer: (c).required rate of return
Question 60. In zero coupon bonds, the impact of higher duration on maturity is that
  1.    maturity will be zero
  2.    maturity will be elastic
  3.    maturity will be higher
  4.    maturity will be lower
 Discuss Question
Answer: Option D. -> maturity will be lower
Answer: (d).maturity will be lower

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