A. Rising bet rate
B. Floating rate debt
C. Market rate debt
D. Stable debt rate
Related Mcqs:
- An interest rate which is paid by firm as soon as it issues debt is classified as pre-tax__________?
A. Term structure
B. Market premium
C. Risk premium
D. Cost of debt - If market interest rate rises above coupon rate, then bond will be sold_____________?
A. Equal to return rate
B. Seasoned price
C. Below its par value
D. Above its par value - Coupon payment is calculated with help of interest rate, then this rate considers as________?
A. Payment interest
B. Par interest
C. Coupon interest
D. Yearly interest rate - The value of option issued to call debt is subtracted from rate of return on callable bond to calculate the rate of return on ____________?
A. contributed bonds
B. non-callable bonds
C. callable bonds
D. discounted bonds - The value of option issued to call debt is $780 and return rate on callable bond is $370 then return rate on non-callable bond is ___________?
A. 1250
B. 1150
C. 1350
D. 410 - The value of option issued to call debt is $670 and return rate on callable bond is $540 then return rate on non-callable bond is ____________?
A. 1210
B. 1010
C. 130
D. 1020 - The value of option issued to call debt is $940 and return rate on callable bond is $480 then return rate on non-callable bond is __________?
A. 460
B. 1520
C. 1420
D. 1620 - Rate of return which is required to satisfy stockholders and debt holders is classified as__________?
A. Weighted average cost of interest
B. Weighted average cost of capital
C. Weighted average salvage value
D. Mean cost of capital - Rate of required return by debt holders is used for estimation the__________?
A. Cost of debt
B. Cost of equity
C. Cost of internal capital
D. Cost of reserve assets - If market interest rate falls below coupon rate then bond will be sold__________?
A. Below its par value
B. Above its par value
C. Equal to return rate
D. Seasoned price
