Key Characteristics of Bonds MCQ (Multiple Choice Questions) PDF Download

If the bond's call provision is practiced in first year of issuance then an additional payment is classified as

1. issuance provision
2. bond provision
3. call provision
4. first provision

The payment divided by the par value is classified as

1. divisible payment
2. coupon payment
3. par payment
4. per period payment

The call provision practiced by the company which states that call price will be paid is classified as

1. super refund provision
2. super put redemption
3. make-whole call provision
4. super call provision

The protective covenant devised in the market to reduce event risk and to control debt cost is classified as

1. super poison covenant
2. super poison put
3. super poison call
4. super poison redemption

The bond call provision that is not practiced even after several years of issuance is classified as

1. original provision
2. deferred call
3. deferred provision
4. permanent provision