A. Nominal rate
B. Premium rate
C. Quoted rate
D. Both a and c
Related Mcqs:
- When the market’s required rate of return for a particular bond is much less than its coupon rate, the bond is selling at:
A. Premium
B. Discount
C. Par
D. Cannot be determined without more information - 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 - If coupon rate is less than going rate of interest, then bond will be sold________?
A. Seasoned par value
B. More than its par value
C. Seasoned par value
D. At par value - 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 - 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 - If coupon rate is more than going rate of interest, then bond will be sold________?
A. More than its par value
B. Seasoned par value
C. At par value
D. Below its par value - If coupon rate is equal to going rate of interest, then bond will be sold________?
A. At par value
B. Below its par value
C. More than its par value
D. Seasoned par value - Coupon rate of convertible bond is_________?
A. Higher
B. Lower
C. Variable
D. Stable
