Treasury bonds are exposed to additional risks that are included________?
(A) Reinvestment risk
(B) Interest rate risk
(C) Investment risk
(D) Both A and B
Bonds that have high liquidity premium are usually have_________?
(A) Inflated trading
(B) Default free trading
(C) Less frequently traded
(D) Frequently traded
Falling interest rate leads change to bondholder income which is__________?
(A) Reduction in income
(B) Increment in income
(C) Matured income
(D) Frequent income
Bonds issued by corporations and exposed to default risk are classified as_________?
(A) Corporation bonds
(B) Default bonds
(C) Risk bonds
(D) Zero risk bonds
A type of project whose cash flows would not depend on each other is classified as______________?
(A) Project net gain
(B) Independent projects
(C) Dependent projects
(D) Net value projects
Net present value, profitability index, payback and discounted payback are methods to______________?
(A) Evaluate cash flow
(B) Evaluate projects
(C) Evaluate budgeting
(D) Evaluate equity
Bonds with deferred call have protection which is classified as__________?
(A) Provision protection
(B) Provision protection
(C) Deferred protection
(D) Call protection
Real risk-free interest rate in addition with an inflation premium is equal to_____________?
(A) Required interest rate
(B) Quoted risk-free interest rate
(C) Liquidity risk-free interest rate
(D) Premium risk-free interest rate
Stated value of bonds or face value is considered as_____________?
(A) State value
(B) Par value
(C) Bond value
(D) Per value
A bond whose price will rise above its face value is classified as________?
(A) Premium face value
(B) Premium bond
(C) Premium stock
(D) Premium warrants