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
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
Cash flows occurring with more than one change in sign of cash flow are classified as________?
(A) Non-normal cash flow
(B) Normal cash flow
(C) Normal costs
(D) Non-normal costs
If net present value is positive, then profitability index will be__________?
(A) Greater than two
(B) Equal to
(C) Less than one
(D) Greater than one
Sum of discounted cash flows is best defined as____________?
(A) Technical equity
(B) Defined future value
(C) Project net present value
(D) Equity net present value
Cash outflows are costs of project and are represented by___________?
(A) Negative numbers
(B) Positive numbers
(C) Hurdle number
(D) Relative number