Q. An annual interest payment divided by current price of bond is considered as

View solution

Q. If the coupon rate is more than going rate of interest then the bond will be sold

View solution

Q. The call provision practiced by the company which states that call price will be paid is classified as

View solution

Q. The difference between bond's yield and any other security yield having same maturities is considered as

View solution

Q. The protective covenant devised in the market to reduce event risk and to control debt cost is classified as

View solution

Q. The coupon rate of convertible bond is

View solution

Q. The rate denoted as r* is best classified as

View solution

Q. The outstanding bonds are also classified as

View solution

Q. An inflation rate included in the bond's interest rate is the one which is the inflation rate

View solution

Q. A premium charged by lenders for the securities that cannot be converted into cash is classified as

View solution

Q. An unsecured bond that provides no lien against property as security for the bond obligation is classified as

View solution

Q. The unsecured bonds which are designated for only notes payable or all other debts are classified as

View solution

Q. A market interest rate for specific type of bond is classified as bond's

View solution

Q. The bond which is issued in market and few days are passed of its issuance is classified as

View solution

Q. The real risk-free rate is applicable when it is expected that there will be

View solution

Q. The bonds that do not pay original coupon payment but payment is made from additional bonds are classified as

View solution

Q. According to top rating agencies S&P the double-B and other lower grade bonds are classified as

View solution

Q. The bond call provision that is not practiced even after several years of issuance is classified as

View solution

Q. The price of an outstanding bond increases when the market rate

View solution

Q. An average inflation rate which is expected over the life of security is classified as

View solution