A. relatively lower
B. relatively higher
C. relatively zero
D. relatively discounted
Related Mcqs:
- The value of conversion option to bond holder is $550 and the rate of return on non-convertible bond is $270 then rate of return on convertible bond is _________?
A. 0.0204
B. 2.04
C. 280
D. 820 - The value of conversion option to bond holder is $220 and the rate of return on non-convertible bond is $350 then rate of return on convertible bond is _____________?
A. 570
B. 130
C. 670
D. 1.59 - The value of conversion option to bond holder is $740 and the rate of return on non-convertible bond is $540 then rate of return on convertible bond is ____________?
A. 0.0137
B. 1280
C. 1.37
D. 200 - The yield on subordinated bonds as compared to non-subordinated bonds is considered as _________?
A. highly risky and higher yields
B. highly risky and lower yields
C. less risky and higher yields
D. less risky and lower yields - The convertible bonds are considered as hybrid bonds because they have properties of _____________?
A. debts
B. common equity
C. both debt and equity
D. ordinate and subordinated - Considering the yields of bonds, the secured bonds as compared to unsecured bonds have
A. higher yields
B. lower yields
C. untimed yields
D. termed yields - The call premium of bond is $560 and the call price of bond is $340 then face value of the bond is _________?
A. $1.65
B. $220
C. $900
D. $0.0165 - When characteristics of bonds are perceived as unfavorable or favorable to the holders of the bond, then differences of yield spread
A. must not changes
B. must changes
C. must be debited
D. must be credited - Cost of common stock is 16% and bond yield is 9% then bond risk premium would be_________?
A. 7%
B. 8%
C. 1.78%
D. 25% - The bonds that are considered as junk bonds and termed as higher yield are classified as ________?
A. expansion debentures
B. premium debentures
C. subordinated debentures
D. ordinate debentures
