Question

The reinvestment risk of bond's is usually higher on

a.

income bonds

b.

callable bonds

c.

premium bonds

d.

default free bonds

Answer: (b).callable bonds

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. The reinvestment risk of bond's is usually higher on

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. If market interest rate fells below the coupon rate then the bond will be sold

Q. The yield of interest rate which is below than coupon rate, this yield is classified as

Q. An inflation rate including in quoted interest rate on security, is the inflation rate

Q. The market in which bonds are traded over-the-counter than in an organized exchange is classified as

Q. The coupon payment is calculated with the help of interest rate, then this rate considers as

Q. An effect of interest rate risk and investment risk on a bond's yield is classified as

Q. The coupon payment of bond which is fixed at time of issuance

Q. The exchange markets and over the counter markets are considered as two types of

Q. The current market price of common stock is $15 and the conversion rate received on conversion is $320 to calculate

Q. The bonds that are backed by cash flow from project and are sold to finance particular project are classified as

Q. The treasury notes that provide returns tied to inflation rate are classified as

Q. The type of bonds in which there are many maturity dates and part of issue is paid off at every maturity date is considered as

Q. The placement of financial issue in which investment bank and municipality together find the large buyers is classified as

Q. The bonds having longer maturity on original loans than promised payments are classified as

Q. If the trading of municipal bonds is infrequent, then secondary market is considered as

Q. The difference between face value of the bond and the call price of the bond is considered as

Q. The bonds that are considered investment rating bonds are given the rating of

Q. Considering the yields of bonds, the secured bonds as compared to unsecured bonds have

Q. IN negotiated sale, the services provided by the investment banks are

Q. The auction of the TIPS security is 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!