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 26 of 28

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Q251.
The type of provision which forces bond holders to sell bonds to issuer at value above than par is classified as
Discuss
Answer: (d).call provision
Q252.
The financial institutions generally such as insurance companies and banks are prohibited to buy anything but
Discuss
Answer: (b).investment grade bond securities
Q253.
The convertible bonds are considered as hybrid bonds because they have properties of
Discuss
Answer: (c).both debt and equity
Q254.
In the dimension of default risk, the municipal bonds are considered as
Discuss
Answer: (b).not default risk free
Q255.
The coupon rate on Treasury Inflation Protection Securities is determined by
Discuss
Answer: (c).auction process
Q256.
According to the bond holder point of view, the bonds issued with sinking fund provision are classified as
Discuss
Answer: (b).less risky
Q257.
The bond which is used as insurer to protect investors against the interest rate risk, is classified as
Discuss
Answer: (b).zero coupon treasury bonds
Q258.
Considering the ratings, the bonds that have lowest spread of interest as compared to similar maturity in Treasury Securities are classified as
Discuss
Answer: (b).triple A rating bonds
Q259.
The reason of default risk on municipal bonds is because of
Discuss
Answer: (a).economic recession
Q260.
The current market price is multiplied to the conversion rate received on conversion to calculate
Discuss
Answer: (a).conversion value