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Financial Management Competitive Exam MCQs – Practice Test 5 (Chapter 3)

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Bonds & Bond Valuation MCQs – Practice Test 5 PDF Download

MCQ 21: The rate denoted as r* is best classified as:

  1. real risk-free interest rate
  2. real-risk free nominal rate
  3. real-risk free quoted rate
  4. real-risk free nominal premium

MCQ 22: The outstanding bonds are also classified as:

  1. standing bonds
  2. outdated bonds
  3. dated bonds
  4. seasoned bonds

MCQ 23: An inflation rate included in the bond's interest rate is the one which is the inflation rate:

  1. at bond issuance
  2. expected in future
  3. expected at time of maturity
  4. expected at deferred call

MCQ 24: A premium charged by lenders for the securities that cannot be converted into cash is classified as:

  1. required premium
  2. liquidity premium
  3. marketability premium
  4. Both B and C

MCQ 25: An unsecured bond that provides no lien against property as security for the bond obligation is classified as:

  1. secured bond
  2. debenture
  3. obligation bond
  4. specific bond

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