In interest rate swap transaction, the party who pays the floating payments of interest is considered as:
A. notion buyer
B. notion seller
C. swap buyer
D. swap seller
The inverse relationship between price change and interest rate change is represented by:
A. negative discount
B. negative duration
C. positive duration
D. positive discount
The direct relationship between price change and interest rate change is represented by:
A. positive duration
B. positive discount
C. negative discount
D. negative duration
In zero coupon bonds, the increase in duration with respect to maturity must be at:
A. decreasing rate
B. increasing rate
C. alarming rate
D. inelastic rate
The type of bond for which the bonds present value is greater than bonds face value is classified as:
A. coupon bond
B. interest bonds
C. discount bond
D. premium bond
The bonds that does not pay any interest rate are considered as:
A. interest free bond
B. zero coupon bond
C. price less coupon bond
D. useless price bonds
For an investment, the weighted average time to maturity is considered as:
A. premium time
B. standard time
C. mean time
D. duration
For given change in interest rates, the percentage change in the present value of bond is classified as:
A. price sensitivity
B. yield sensitivity
C. maturity sensitivity
D. premium sensitivity
The commercial mortgages, farm mortgages and home mortgages are categories of:
A. swapped mortgages
B. sovereign mortgages
C. secondary mortgages
D. primary mortgagees
The mortgages used to purchase the shopping malls and office buildings are classified as:
A. developed mortgages
B. dwelling mortgages
C. commercial mortgages
D. non-commercial mortgages
