When price of bond is calculated below its par value, it is classified as___________?

A: classified bond

B: Discount bond

C: Compound bond

D: Consideration earning

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Discount bond

Rate on debt that increases as soon market rises is classified as________?

A: Rising bet rate

B: Floating rate debt

C: Market rate debt

D: Stable debt rate

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Floating rate debt

Price of an outstanding bond increases when market rate___________?

A: Never changes

B: Increases

C: Decreases

D: Earned

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Decreases

Bonds issued by corporations and exposed to default risk are classified as_________?

A: Corporation bonds

B: Default bonds

C: Risk bonds

D: Zero risk bonds

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Corporation bonds

Falling interest rate leads change to bondholder income which is__________?

A: Reduction in income

B: Increment in income

C: Matured income

D: Frequent income

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Reduction in income

Bonds that have high liquidity premium are usually have_________?

A: Inflated trading

B: Default free trading

C: Less frequently traded

D: Frequently traded

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Less frequently traded

Treasury bonds are exposed to additional risks that are included________?

A: Reinvestment risk

B: Interest rate risk

C: Investment risk

D: Both A and B

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Both A and B

Payment divided by par value is classified as______________?

A: Divisible payment

B: Coupon payment

C: Par payment

D: Per period payment

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Coupon payment

An annual interest payment divided by current price of bond is considered as_____________?

A: Current yield

B: Maturity yield

C: Return yield

D: Earning yield

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Current yield

Coupon rate of convertible bond is_________?

A: Higher

B: Lower

C: Variable

D: Stable

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Lower

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