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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