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Financial Management MCQs (BBA Finance) From Textbook

Financial Management MCQs – Practice Test 16 (Chapter 3)

Bonds and Bond Valuation Notes Questions with Answers PDF Download – Test 16

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Bonds & Bond Valuation MCQs – Practice Test 16 PDF Download

MCQ 76: The reinvestment risk of bonds is usually higher on:

  1. income bonds
  2. callable bonds
  3. premium bonds
  4. default free bonds

MCQ 77: If market interest rate fells below the coupon rate then the bond will be sold:

  1. below its par value
  2. above its par value
  3. equal to return rate
  4. seasoned price

MCQ 78: The yield of interest rate which is below than coupon rate, this yield is classified as:

  1. yield to maturity
  2. yield to call
  3. yield to earnings
  4. yield to investors

MCQ 79: An inflation rate including in quoted interest rate on security, is the inflation rate:

  1. expected over security life
  2. expected at deferred call
  3. at bond issuance
  4. expected at time of maturity

MCQ 80: The market in which bonds are traded over-the-counter than in an organized exchange is classified as:

  1. organized markets
  2. trade markets
  3. counter markets
  4. bond markets

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