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

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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

Q. The bonds issued by small companies tend to have

View solution

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

View solution

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

View solution

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

View solution

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

View solution

Q. The coupon rate of the bond is also called

View solution

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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

Q. The legal document in which the rights of issuing corporation and bondholders state is classified as

View solution