Convertible Bond Analysis Notes Questions with Answers PDF Download – Test 35

If the maturity date of the bond is closer than the premium of bond will be

1. relatively lower
2. relatively higher
3. quantifiable
4. not be quantifiable

The foreign bonds issued in Japan financial institutions are classified as

1. bull dog bonds
2. bull cat bonds
3. Yankee bonds
4. samurai bonds

The type of option that gives the right to buyer to buy the underlying option at specific exercise price is considered as

1. European option
2. Australian option
3. call option
4. put option

In financial markets, the bond indenture results in

1. lower federal rate
2. higher federal rate
3. higher risk
4. lower risk

The type of preferred stock in which the dividend does not increase or decrease with the increase or decrease in profit of firm is classified as

1. non-cumulative preferred stock
2. cumulative preferred stock
3. non-participating preferred stock
4. participating preferred stock