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Financial Markets MCQs (BBA Finance) From Textbook

Financial Markets MCQs – Practice Test 16 (Chapter 1)

Bond Markets Notes Questions with Answers PDF Download – Test 16

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Free Bond Markets Notes App Download: Treasury security in which the final principal payment is separated from periodic interest payment is classified as; MCQ with answers: separated security, strip, inflated security, and coupon paid security. Practice Convertible Bond Analysis Quiz Questions, download Kobo e-Book (Free Chapter) for finance financial modeling.

Bond Markets MCQs – Practice Test 16 PDF Download

MCQ 76: The face value of the bond is $550 and the call price of bond is $475 then the value of call premium is:

  1. 1.16
  2. 1025
  3. 75
  4. 0.0116

MCQ 77: The treasury security in which the final principal payment is separated from periodic interest payment is classified as:

  1. STRIP
  2. separated security
  3. inflated security
  4. coupon paid security

MCQ 78: For a taxable security, the tax exempted interest rate on municipal bonds used to determine the:

  1. tax equivalent rate of return
  2. local rate of return
  3. withholding tax rate
  4. general sales tax rate

MCQ 79: The financial institutions having loans swapped for bonds can sell all the bonds in:

  1. under-developed markets
  2. developed markets
  3. primary markets
  4. secondary markets

MCQ 80: The bonds that are not pledged against revenue stream or specific assets are classified as:

  1. general obligation bonds
  2. general obligation notes
  3. general obligation tax
  4. general obligation savings

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