If coupon rate is less than going rate of interest, then bond will be sold________?
(A) Seasoned par value
(B) More than its par value
(C) Seasoned par value
(D) At par value
Price of an outstanding bond increases when market rate___________?
(A) Never changes
(B) Increases
(C) Decreases
(D) Earned
Type of bond which pays interest payment only when it earns is classified as__________?
(A) Income bond
(B) Interest bond
(C) Payment bond
(D) Earning bond
An average inflation rate which is expected over life of security is classified as__________?
(A) Inflation premium
(B) Off season premium
(C) Nominal premium
(D) Required premium
An inflation rate includes in bond’s interest rates is one which is inflation rate________?
(A) At bond issuance
(B) Expected in future
(C) Expected at time of maturity
(D) Expected at deferred call
A market interest rate for specific type of bond is classified as bond’s_____________?
(A) Required rate of return
(B) Required option
(C) Required rate of redemption
(D) Required rate of earning
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