Bonds and Bond Markets MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Bonds and Bond Markets, a fundamental topic in the field of Financial Management and Financial Markets. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Bonds and Bond Markets MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Bonds and Bond Markets mcq questions that explore various aspects of Bonds and Bond Markets problems. Each MCQ is crafted to challenge your understanding of Bonds and Bond Markets principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace Financial Management and Financial Markets tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Bonds and Bond Markets MCQs are your pathway to success in mastering this essential Financial Management and Financial Markets topic.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of Bonds and Bond Markets. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

So, are you ready to put your Bonds and Bond Markets knowledge to the test? Let's get started with our carefully curated MCQs!

Bonds and Bond Markets MCQs | Page 1 of 28

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Q1.
The second mortgages pledged against bond's security are referred as
Discuss
Answer: (d).junior mortgages
Q2.
The long period of bond maturity leads to
Discuss
Answer: (a).more price change
Q3.
If the coupon rate is equal to going rate of interest then the bond will be sold
Discuss
Answer: (a).at par value
Q4.
The falling interest rate leads change to bondholder income which is
Discuss
Answer: (a).reduction in income
Q5.
The bonds issued by corporations and exposed to default risk are classified as
Discuss
Answer: (a).corporation bonds
Q6.
The treasury bonds are exposed to additional risks and include
Discuss
Answer: (d).both a and b
Q7.
If the bond's call provision is practiced in first year of issuance then an additional payment is classified as
Discuss
Answer: (c).call provision
Q8.
The reinvestment risk of bonds is higher on
Discuss
Answer: (a).short maturity bonds
Q9.
The bonds that have high liquidity premium usually have
Discuss
Answer: (c).less frequently traded
Q10.
The bond which is offered below its face value is classified as
Discuss
Answer: (b).original issue discount bond