Convertible Bond Analysis MCQs (Multiple Choice Questions) PDF Download - 94

The type of provision which forces bond holders to sell bonds to issuer at value above than par is classified as

1. discount premium
2. discount provision
3. call premium
4. call provision

The position which came in to existence because of holding assets more than liabilities is considered as

1. net long in currency
2. net short in currency
3. net surplus in assets
4. net surplus in liabilities

The financial institutions generally such as insurance companies and banks are prohibited to buy anything but

1. split grade bonds
2. investment grade bond securities
3. portfolio grade bonds
4. sinking grade bonds

The inverse relationship between price change and interest rate change is represented by

1. negative discount
2. negative duration
3. positive duration
4. positive discount

If the financial intermediaries are appointed by the funds suppliers then these intermediaries are classified as

1. supplier monitor
2. funds monitor
3. delegated monitor
4. allocation monitor