Bond Valuations Multiple Choice Questions with Answers – PDF Download

MCQ 1: A market interest rate for specific type of bond is classified as bond's:

1. required rate of return
2. required option
3. required rate of redemption
4. required rate of earnings

MCQ 2: The bond's promised rate of return is also considered as:

1. yield to earnings
2. yield to investors
3. yield to maturity
4. yield to return

MCQ 3: The price of an outstanding bond decreases when the market rate is:

1. increased
2. decreased
3. earned
4. never changed

MCQ 4: The rate of interest which is usually discussed by investors whenever the rate of return is discussed, is classified as:

1. yield to maturity
2. yield to return
3. yield to earnings
4. yield to investors

MCQ 5: If the default probability is zero and the bond is not called then the yield to maturity is:

1. mature expected return rate
2. lower than expected return rate
3. higher than expected return rate
4. equal to expected return rate