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 4 of 28

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Q31.
According to top rating agencies S&P the double-B and other lower grade bonds are classified as
Discuss
Answer: (b).junk bonds
Q32.
The bond call provision that is not practiced even after several years of issuance is classified as
Discuss
Answer: (b).deferred call
Q33.
The price of an outstanding bond increases when the market rate
Discuss
Answer: (c).decreases
Q34.
An average inflation rate which is expected over the life of security is classified as
Discuss
Answer: (a).inflation premium
Q35.
The type of bond which pays interest payment only when it earns is classified as
Discuss
Answer: (a).income bond
Q36.
The type of bonds that pay no coupon payment but provide little appreciation are classified as
Discuss
Answer: (c).zero coupon bond
Q37.
In the call provision, it is stated that company will pay to issue an amount
Discuss
Answer: (a).higher than par value
Q38.
If the coupon rate is less than going rate of interest then the bond will be sold
Discuss
Answer: (b).more than its par value
Q39.
The type of provision which allows an orderly retirement of an issued bond is classified as
Discuss
Answer: (d).sinking fund provision
Q40.
The bonds issued by small companies tend to have
Discuss
Answer: (a).high liquidity premium