If market interest rate rises above coupon rate, then bond will be sold:
A. Equal to return rate
B. Seasoned price
C. Below its par value
D. Above its par value
Type of bonds that are issued by foreign governments or foreign corporations are classified as:
A. Zero risk bonds
B. Zero bonds
C. Foreign bonds
D. Government bonds
Rate of return (in percentages) consists of:
A. Capital gain yield interest yield
B. Return yield + stable yield
C. Return yield + unstable yield
D. Par value + market value
If market interest rate falls below coupon rate then bond will be sold:
A. Below its par value
B. Above its par value
C. Equal to return rate
D. Seasoned price
Yield of interest rate which is below than coupon rate, this yield is classified as:
A. Yield to maturity
B. Yield to call
C. Yield to earning
D. Yield to investors
An effect of interest rate risk and investment risk on a bond’s yield is classified as:
A. Reinvestment premium
B. Investment risk premium
C. Maturity risk premium
D. Defaulter’s premium
Coupon payment is calculated with help of interest rate, then this rate considers as:
A. Payment interest
B. Par interest
C. Coupon interest
D. Yearly interest rate
Coupon payment of bond which is fixed at time of issuance:
A. Remains same
B. Becomes stable
C. Becomes change
D. Becomes low
Market in which bonds are traded over-the-counter than in an organized exchange is classified as:
A. Organized markets
B. Trade markets
C. Counter markets
D. Bond markets
Reinvestment risk of bond’s is usually higher on:
A. Income bonds
B. Callable bonds
C. Premium bonds
D. Default free bonds
