An effect of interest rate risk and investment risk on a bond’s yield is classified as_________?

Related Mcqs:

1. 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...

2. 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...

3. 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...

4. 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...

5. 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...

6. 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...

7. 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...

8. 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...

9. 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...

10. 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...