Bond Valuations MCQ (Multiple Choice Questions) PDF Download

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

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

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

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

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

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