Coupon Bonds Multiple Choice Questions with Answers – PDF Download

The coupon rate of convertible bond is

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

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

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

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

The coupon payment of bond which is fixed at time of issuance

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