11981. Bond that has been issued in very recent timing is classified as_______?
✅ C. New issue
Option A : Mature issue Option B : Earning issue Option C : New issue Option D : Recent issue Option E : Correct Answer : New issue Read more
Management Sciences MCQs – Page 600
11982. Bonds issued by local and state governments with default risk are____________?
✅ A. Municipal bonds
Option A : Municipal bonds Option B : Corporation bonds Option C : Default bonds Option D : Zero bonds Option E : Correct Answer : Municipal bonds Read more
11983. Maturity date decides at time of issuance of bond and legally permissible is classified as____________?
✅ A. Original maturity
Option A : Original maturity Option B : Permanent maturity Option C : Artificial maturity Option D : Valued maturity Option E : Correct Answer : Original maturity Read more
11984. Bonds that can be converted into shares of common stock are classified as_________?
✅ A. Convertible bonds
Option A : Convertible bonds Option B : Stock bonds Option C : Shared bonds Option D : Common bonds Option E : Correct Answer : Convertible bonds Read more
11985. Price of an outstanding bond increases when market rate___________?
✅ C. Decreases
Option A : Never changes Option B : Increases Option C : Decreases Option D : Earned Option E : Correct Answer : Decreases Read more
11986. If coupon rate is less than going rate of interest, then bond will be sold________?
✅ B. More than its par value
Option A : Seasoned par value Option B : More than its par value Option C : Seasoned par value Option D : At par value Option E : Correct Answer : More than its par value Read more
11987. A bond whose price will rise above its face value is classified as________?
✅ B. Premium bond
Option A : Premium face value Option B : Premium bond Option C : Premium stock Option D : Premium warrants Option E : Correct Answer : Premium bond Read more
11988. Stated value of bonds or face value is considered as_____________?
✅ B. Par value
Option A : State value Option B : Par value Option C : Bond value Option D : Per value Option E : Correct Answer : Par value Read more
11989. Real risk-free interest rate in addition with an inflation premium is equal to_____________?
✅ B. Quoted risk-free interest rate
Option A : Required interest rate Option B : Quoted risk-free interest rate Option C : Liquidity risk-free interest rate Option D : Premium risk-free interest rate Option E : Correct Answer : Quoted risk-free interest rate Read more
11990. Bonds with deferred call have protection which is classified as__________?
✅ D. Call protection
Option A : Provision protection Option B : Provision protection Option C : Deferred protection Option D : Call protection Option E : Correct Answer : Call protection Read more
11991. When price of bond is calculated below its par value, it is classified as___________?
✅ B. Discount bond
Option A : classified bond Option B : Discount bond Option C : Compound bond Option D : Consideration earning Option E : Correct Answer : Discount bond Read more
11992. Rate on debt that increases as soon market rises is classified as________?
✅ B. Floating rate debt
Option A : Rising bet rate Option B : Floating rate debt Option C : Market rate debt Option D : Stable debt rate Option E : Correct Answer : Floating rate debt Read more
11993. An annual interest payment divided by current price of bond is considered as_____________?
✅ A. Current yield
Option A : Current yield Option B : Maturity yield Option C : Return yield Option D : Earning yield Option E : Correct Answer : Current yield Read more
11994. Coupon rate of convertible bond is_________?
✅ B. Lower
Option A : Higher Option B : Lower Option C : Variable Option D : Stable Option E : Correct Answer : Lower Read more
11995. An outstanding bond are also classified as__________?
✅ D. Seasoned bonds
Option A : Standing bonds Option B : Outdated bonds Option C : Dated bonds Option D : Seasoned bonds Option E : Correct Answer : Seasoned bonds Read more
11996. A market interest rate for specific type of bond is classified as bonds_____________?
✅ A. Required rate of return
Option A : Required rate of return Option B : Required option Option C : Required rate of redemption Option D : Required rate of earning Option E : Correct Answer : Required rate of return Read more
11997. An inflation rate includes in bonds interest rates is one which is inflation rate________?
✅ B. Expected in future
Option A : At bond issuance Option B : Expected in future Option C : Expected at time of maturity Option D : Expected at deferred call Option E : Correct Answer : Expected in future Read more
11998. An average inflation rate which is expected over life of security is classified as__________?
✅ A. Inflation premium
Option A : Inflation premium Option B : Off season premium Option C : Nominal premium Option D : Required premium Option E : Correct Answer : Inflation premium Read more
11999. Type of bond which pays interest payment only when it earns is classified as__________?
✅ A. Income bond
Option A : Income bond Option B : Interest bond Option C : Payment bond Option D : Earning bond Option E : Correct Answer : Income bond Read more
12000. Bonds issued by corporations and exposed to default risk are classified as_________?
✅ A. Corporation bonds
Option A : Corporation bonds Option B : Default bonds Option C : Risk bonds Option D : Zero risk bonds Option E : Correct Answer : Corporation bonds Read more