A. Reinvestment premium
B. Investment risk premium
C. Maturity risk premium
D. Defaulter’s premium
Related Mcqs:
- Yield of interest rate which is below than coupon rate, this yield is classified as_________?
A. Yield to maturity
B. Yield to call
C. Yield to earning
D. Yield to investors - Bonds issued by corporations and exposed to default risk are classified as_________?
A. Corporation bonds
B. Default bonds
C. Risk bonds
D. Zero risk bonds - Sum of market risk and diversifiable risk are classified as total risk which is equivalent to_______________?
A. Sharpe’s alpha
B. Standard alpha’s
C. Alpha’s variance
D. Variance - 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 - If the price of municipal bonds suddenly changes because of an unexpected interest rate change then the investment bank ____________?
A. faces a high profit
B. faces a loss
C. face a inflation
D. face an index risk - 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 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 bonds that are considered investment rating bonds are given the rating of _________?
A. triple B rating bonds
B. double B
C. triple A
D. double A - 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 bond which is used as insurer to protect investors against the interest rate risk, is classified as ___________?
A. zero coupon treasury notes
B. zero coupon treasury bonds
C. One payment bonds
D. zero treasurer bonds
