Financial Bonds Multiple Choice Questions with Answers – PDF Download

MCQ 1: The bond which is offered below its face value is classified as:

1. present value bond
2. original issue discount bond
3. coupon issued bond
4. discounted bond

MCQ 2: The redemption option which protects investors against rise in interest rate is considered as:

1. redeemable at deferred
2. redeemable at par
3. redeemable at refund
4. redeemable at finding

MCQ 3: The type of bond which pays interest payment only when it earns is classified as:

1. income bond
2. interest bond
3. payment bond
4. earnings bond

MCQ 4: The type of options that permit the bond holder to buy stocks at stated price are classified as:

1. provision
2. guarantee
3. warrants
4. convertibles

MCQ 5: An usage of proceeds of new issue to retire issue with high-rate is classified as:

1. refunding operation
2. funding operation
3. proceeds operation
4. deferred operation