E-PolyLearning

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

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

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

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

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
View Answer Report Discuss 50-50!
Answer: (a).corporation bonds

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