Bonds and Their Valuation

Bonds and Their Valuation
If market interest rate fells below the coupon rate then the bond will be sold
below its par value
above its par value
equal to return rate
seasoned price
Author: rikazzz Comment
Bonds and Their Valuation
The bond call provision that is not practiced even after several years of issuance is classified as
original provision
deferred call
deferred provision
permanent provision
Author: rikazzz Comment
Bonds and Their Valuation
The bond’s promised rate of return is also considered as
yield to earnings
yield to investors
yield to maturity
yield to return
Author: rikazzz Comment
Bonds and Their Valuation
The second mortgages pledged against bond’s security are referred as
loan mortgages
medium mortgages
senior mortgages
junior mortgages
Author: rikazzz Comment
Bonds and Their Valuation
An inflation rate included in the bond’s interest rate is the one which is the inflation rate
at bond issuance
expected in future
expected at time of maturity
expected at deferred call
Author: rikazzz Comment
Bonds and Their Valuation
The call provision practiced by the company which states that call price will be paid is classified as
super refund provision
super put redemption
make-whole call provision
super call provision
Author: rikazzz Comment
Bonds and Their Valuation
An unsecured bond that provides no lien against property as security for the bond obligation is classified as
secured bond
debenture
obligation bond
specific bond
Author: rikazzz Comment
Bonds and Their Valuation
An effect of interest rate risk and investment risk on a bond’s yield is classified as
reinvestment premium
investment risk premium
maturity risk premium
defaulter’s premium
Author: rikazzz Comment
Bonds and Their Valuation
According to top rating agencies SandP the triple-A and double-A rating bonds are classified as an
extremely discounted
extremely safe
extremely risky
extremely inflated
Author: rikazzz Comment
Bonds and Their Valuation
When the price of bond is calculated below its par value, it is classified as
classified bond
discount bond
compound bond
consideration earnings
Author: rikazzz Comment

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