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 5 of 28

Q41.
An interest yield = 7.9% and capital gains yield = 2.5% then the total rate of return is
Discuss
Answer: (a).0.1
Q42.
The stated value of the bonds or the face value is considered as
Discuss
Answer: (b).par value
Q43.
The type of bond in which the payments are made on the basis of inflation index is classified as
Discuss
Answer: (b).purchasing power bond
Q44.
An bond whose price will rise above its face value is classified as
Discuss
Answer: (b).premium bond
Q45.
The coupon rate of the bond is also called
Discuss
Answer: (d).both a and c
Q46.
The bond's promised rate of return is also considered as
Discuss
Answer: (c).yield to maturity
Q47.
A premium which reflects possibility of issuer who does not pay principal amount of bonds is called
Discuss
Answer: (c).default risk premium
Q48.
The real risk-free interest rate in addition with an inflation premium is equal to
Discuss
Answer: (b).quoted risk-free interest rate
Q49.
An increase in interest rate leads to decline in value of
Discuss
Answer: (b).outstanding bonds
Q50.
The bonds issued by government and backed by U.S government are classified as
Discuss
Answer: (b).treasury bonds
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