Coupon Bonds Multiple Choice Questions with Answers – PDF Download

MCQ 1: The coupon rate of convertible bond is:

1. higher
2. lower
3. variable
4. stable

MCQ 2: The bonds that do not pay original coupon payment but payment is made from additional bonds are classified as:

1. payment in-kind bonds
2. payment off-kind bonds
3. kind payment
4. additional bond

MCQ 3: The type of bonds that pay no coupon payment but provide little appreciation are classified as:

1. depreciated bond
2. interest bond
3. zero coupon bond
4. appreciation bond

MCQ 4: The coupon payment is calculated with the help of interest rate, then this rate considers as:

1. payment interest
2. par interest
3. coupon interest
4. yearly interest rate

MCQ 5: The coupon payment of bond which is fixed at time of issuance:

1. remains same
2. becomes stable
3. becomes change
4. becomes low