Bonds And Bond Valuation MCQs

Option A: Short maturity bonds

Option B: High maturity bonds

Option C: High premium bonds

Option D: High inflated bonds

Correct Answer: Short maturity bonds ✔

Option A: Depreciated bond

Option B: Interest bond

Option C: Zero coupon bond

Option D: Appreciation bond

Correct Answer: Zero coupon bond ✔

Option A: High liquidity premium

Option B: High inflation premium

Option C: High default premium

Option D: High yield premium

Correct Answer: High liquidity premium ✔

Option A: Nominal rate

Option B: Premium rate

Option C: Quoted rate

Option D: Both a and c

Correct Answer: Both a and c ✔

Option A: Junk bonds

Option B: Outstanding bonds

Option C: Standing bonds

Option D: Premium bonds

Correct Answer: Outstanding bonds ✔

Option A: Issued security

Option B: Treasury bonds

Option C: U.S bonds

Option D: Return security

Correct Answer: Treasury bonds ✔

Option A: Bond value

Option B: Per value

Option C: State value

Option D: Par value

Correct Answer: Par value ✔

Option A: Original maturity

Option B: Permanent maturity

Option C: Artificial maturity

Option D: Valued maturity

Correct Answer: Original maturity ✔

Option A: Municipal bonds

Option B: Corporation bonds

Option C: Default bonds

Option D: Zero bonds

Correct Answer: Municipal bonds ✔

Option A: Mature issue

Option B: Earning issue

Option C: New issue

Option D: Recent issue

Correct Answer: New issue ✔

Option A: Provision

Option B: Guarantee

Option C: Warrants

Option D: Convertibles

Correct Answer: Warrants ✔

Option A: Required rate of redemption

Option B: Required rate of earning

Option C: Required rate of return

Option D: Required option

Correct Answer: Required rate of return ✔

Option A: Equal to return rate

Option B: Seasoned price

Option C: Below its par value

Option D: Above its par value

Correct Answer: Below its par value ✔

Option A: Zero risk bonds

Option B: Zero bonds

Option C: Foreign bonds

Option D: Government bonds

Correct Answer: Foreign bonds ✔

Option A: Capital gain yield interest yield

Option B: Return yield + stable yield

Option C: Return yield + unstable yield

Option D: Par value + market value

Correct Answer: Capital gain yield interest yield ✔

Option A: Below its par value

Option B: Above its par value

Option C: Equal to return rate

Option D: Seasoned price

Correct Answer: Above its par value ✔

Option A: Yield to maturity

Option B: Yield to call

Option C: Yield to earning

Option D: Yield to investors

Correct Answer: Yield to call ✔

Option A: Reinvestment premium

Option B: Investment risk premium

Option C: Maturity risk premium

Option D: Defaulter’s premium

Correct Answer: Maturity risk premium ✔

Option A: Payment interest

Option B: Par interest

Option C: Coupon interest

Option D: Yearly interest rate

Correct Answer: Coupon interest ✔

Option A: Remains same

Option B: Becomes stable

Option C: Becomes change

Option D: Becomes low

Correct Answer: Remains same ✔

Option A: Organized markets

Option B: Trade markets

Option C: Counter markets

Option D: Bond markets

Correct Answer: Bond markets ✔

Option A: Income bonds

Option B: Callable bonds

Option C: Premium bonds

Option D: Default free bonds

Correct Answer: Callable bonds ✔

Option A: Convertible bonds

Option B: Stock bonds

Option C: Shared bonds

Option D: Common bonds

Correct Answer: Convertible bonds ✔

Option A: Rising bet rate

Option B: Floating rate debt

Option C: Market rate debt

Option D: Stable debt rate

Correct Answer: Floating rate debt ✔

Option A: classified bond

Option B: Discount bond

Option C: Compound bond

Option D: Consideration earning

Correct Answer: Discount bond ✔

Option A: Provision protection

Option B: Provision protection

Option C: Deferred protection

Option D: Call protection

Correct Answer: Call protection ✔

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

Correct Answer: Quoted risk-free interest rate ✔

Option A: State value

Option B: Par value

Option C: Bond value

Option D: Per value

Correct Answer: Par value ✔

Option A: Premium face value

Option B: Premium bond

Option C: Premium stock

Option D: Premium warrants

Correct Answer: Premium bond ✔

Option A: Seasoned par value

Option B: More than its par value

Option C: Seasoned par value

Option D: At par value

Correct Answer: More than its par value ✔

Option A: Never changes

Option B: Increases

Option C: Decreases

Option D: Earned

Correct Answer: Decreases ✔

Option A: Income bond

Option B: Interest bond

Option C: Payment bond

Option D: Earning bond

Correct Answer: Income bond ✔

Option A: Inflation premium

Option B: Off season premium

Option C: Nominal premium

Option D: Required premium

Correct Answer: Inflation premium ✔

Option A: At bond issuance

Option B: Expected in future

Option C: Expected at time of maturity

Option D: Expected at deferred call

Correct Answer: Expected in future ✔

Option A: Required rate of return

Option B: Required option

Option C: Required rate of redemption

Option D: Required rate of earning

Correct Answer: Required rate of return ✔

Option A: Standing bonds

Option B: Outdated bonds

Option C: Dated bonds

Option D: Seasoned bonds

Correct Answer: Seasoned bonds ✔

Option A: Higher

Option B: Lower

Option C: Variable

Option D: Stable

Correct Answer: Lower ✔

Option A: Current yield

Option B: Maturity yield

Option C: Return yield

Option D: Earning yield

Correct Answer: Current yield ✔

Option A: Divisible payment

Option B: Coupon payment

Option C: Par payment

Option D: Per period payment

Correct Answer: Coupon payment ✔

Option A: Reinvestment risk

Option B: Interest rate risk

Option C: Investment risk

Option D: Both A and B

Correct Answer: Both A and B ✔

Option A: Inflated trading

Option B: Default free trading

Option C: Less frequently traded

Option D: Frequently traded

Correct Answer: Less frequently traded ✔

Option A: Reduction in income

Option B: Increment in income

Option C: Matured income

Option D: Frequent income

Correct Answer: Reduction in income ✔

Option A: Corporation bonds

Option B: Default bonds

Option C: Risk bonds

Option D: Zero risk bonds

Correct Answer: Corporation bonds ✔