Question

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

a.

payment in-kind bonds

b.

payment off-kind bonds

c.

kind payment

d.

additional bond

Answer: (a).payment in-kind bonds

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

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

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

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

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

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

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

Q. The type of bond which pays interest payment only when it earns is classified as

Q. The type of bonds that pay no coupon payment but provide little appreciation are classified as

Q. In the call provision, it is stated that company will pay to issue an amount

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

Q. The type of provision which allows an orderly retirement of an issued bond is classified as

Q. The bonds issued by small companies tend to have

Q. An interest yield = 7.9% and capital gains yield = 2.5% then the total rate of return is

Q. The stated value of the bonds or the face value is considered as

Q. The type of bond in which the payments are made on the basis of inflation index is classified as

Q. An bond whose price will rise above its face value is classified as

Q. The coupon rate of the bond is also called

Q. The bond's promised rate of return is also considered as

Q. A premium which reflects possibility of issuer who does not pay principal amount of bonds is called

Q. The real risk-free interest rate in addition with an inflation premium is equal to

Q. An increase in interest rate leads to decline in value of

Q. The bonds issued by government and backed by U.S government are classified as

Recommended Subjects

Are you eager to expand your knowledge beyond Financial Management and Financial Markets? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!