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 2 of 28

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Q11.
The risk of fall in income due to fall in interest rates in future is classified as
Discuss
Answer: (c).reinvestment risk
Q12.
The redemption option which protects investors against rise in interest rate is considered as
Discuss
Answer: (b).redeemable at par
Q13.
The payment divided by the par value is classified as
Discuss
Answer: (b).coupon payment
Q14.
An official entity that represents the bondholders and ensures the stated rules in indenture is classified as
Discuss
Answer: (a).trustee
Q15.
An annual interest payment divided by current price of bond is considered as
Discuss
Answer: (a).current yield
Q16.
If the coupon rate is more than going rate of interest then the bond will be sold
Discuss
Answer: (d).below its par value
Q17.
The call provision practiced by the company which states that call price will be paid is classified as
Discuss
Answer: (c).make-whole call provision
Q18.
The difference between bond's yield and any other security yield having same maturities is considered as
Discuss
Answer: (b).bond spread
Q19.
The protective covenant devised in the market to reduce event risk and to control debt cost is classified as
Discuss
Answer: (b).super poison put
Q20.
The coupon rate of convertible bond is
Discuss
Answer: (b).lower