Bonds issued by small companies tend to have:
A. High liquidity premium
B. High inflation premium
C. High default premium
D. High yield premium
Coupon rate of bond is also called:
A. Nominal rate
B. Premium rate
C. Quoted rate
D. Both a and c
An increasing in interest rate leads to decline in value of:
A. Junk bonds
B. Outstanding bonds
C. Standing bonds
D. Premium bonds
Bonds issued by government and backed by Pak government are classified as:
A. Issued security
B. Treasury bonds
C. U.S bonds
D. Return security
Value generally promises to pay at maturity date and a firm borrows is considered as bond’s:
A. Bond value
B. Per value
C. State value
D. Par value
Maturity date decides at time of issuance of bond and legally permissible is classified as:
A. Original maturity
B. Permanent maturity
C. Artificial maturity
D. Valued maturity
Bonds issued by local and state governments with default risk are:
A. Municipal bonds
B. Corporation bonds
C. Default bonds
D. Zero bonds
Bond that has been issued in very recent timing is classified as:
A. Mature issue
B. Earning issue
C. New issue
D. Recent issue
Type of options that permit bond holder to buy stocks at stated price are classified as:
A. Provision
B. Guarantee
C. Warrants
D. Convertibles
An interest rate which is used in calculation of cash flows of bonds is called:
A. Required rate of redemption
B. Required rate of earning
C. Required rate of return
D. Required option
