A. floating risk discount
B. less risky
C. more risky
D. floating risk premium
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 type of provision which forces bond holders to sell bonds to issuer at value above than par is classified as ___________?
A. discount premium
B. discount provision
C. call premium
D. call provision - The bond holder can make profit by returning the bonds and exchanging with other securities, if market value with conversion value
A. exceed non-convertible value
B. exceed collateral value
C. exceed mortgage value
D. exceeds market value of bond - The bonds which are classified as junk bond status and have previously considered as investment grade bonds are called __________?
A. risen angel
B. fallen angel
C. fallen devil
D. risen devil - The bonds issued for longer term and must be sold in the country whose currency is not used in denomination of bonds are classified as __________?
A. interbank bonds
B. intrabank bonds
C. Australian bonds
D. Eurobonds - 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 - The type of bonds issued by the governments outside the home country of issuer of bond are classified as ___________?
A. outside bonds
B. foreign bonds
C. issuing country bonds
D. denominated bonds - 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