Finance MCQs
Finance MCQs Test Preparation | Latest 2025 Quiz FPSC, NTS, KPPSC, PPSC, SPSC, BPSC, OTS, UTS, PTS, CTS, ATS, ETEA MCQs Test Questions.
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
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
Floating rate debt
Price of an outstanding bond increases when market rate___________?
A: Never changes
B: Increases
C: Decreases
D: Earned
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
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
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
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
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
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
Current yield
Coupon rate of convertible bond is_________?
A: Higher
B: Lower
C: Variable
D: Stable
Lower