| 1. | The second mortgages pledged against bond's security are referred as |
| a. | loan mortgages |
| b. | medium mortgages |
| c. | senior mortgages |
| d. | junior mortgages |
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Answer: (d).junior mortgages
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| 2. | The long period of bond maturity leads to |
| a. | more price change |
| b. | stable prices |
| c. | standing prices |
| d. | mature prices |
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Answer: (a).more price change
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| 3. | If the coupon rate is equal to going rate of interest then the bond will be sold |
| a. | at par value |
| b. | below its par value |
| c. | more than its par value |
| d. | seasoned par value |
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Answer: (a).at par value
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| 4. | The falling interest rate leads change to bondholder income which is |
| a. | reduction in income |
| b. | increment in income |
| c. | matured income |
| d. | frequent income |
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Answer: (a).reduction in income
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| 5. | The bonds issued by corporations and exposed to default risk are classified as |
| a. | corporation bonds |
| b. | default bonds |
| c. | risk bonds |
| d. | zero risk bonds |
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Answer: (a).corporation bonds
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