A. 7%
B. 8%
C. 1.78%
D. 25%
Related Mcqs:
- According to market risk premium, an amount of risk premium depends upon investor______________?
A. Risk taking
B. Risk aversion
C. Market aversion
D. Portfolio aversion - Term structure premium, an inflation of bond and bond default premium are included in_________________?
A. Risk factors
B. Premium factors
C. Bond buying factors
D. Multi model - An effect of interest rate risk and investment risk on a bond’s yield is classified as_________?
A. Reinvestment premium
B. Investment risk premium
C. Maturity risk premium
D. Defaulter’s premium - The call premium of bond is $760 and the call price of bond is $560 then face value of the bond is ________?
A. 200
B. 300
C. 1320
D. 0.0138 - 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 - The call premium of bond is $630 and the call price of bond is $240 then face value of the bond is _____________?
A. 0.0263
B. 870
C. 390
D. 2.63 - The face value of the bond is $450 and the call price of bond is $250 then the value of call premium is ________?
A. 0.018
B. 200
C. 700
D. 1.8 - The call premium of bond is subtracted from call price of bond to calculate
A. face value of bond
B. face value of stock
C. book value of stock
D. book value of bond - If the maturity date of the bond is closer than the premium of bond will be ________?
A. relatively lower
B. relatively higher
C. quantifiable
D. not be quantifiable - The face value of the bond is $550 and the call price of bond is $475 then the value of call premium is _____________?
A. 1.16
B. 1025
C. 75
D. 0.0116
