A. At bond issuance
B. Expected in future
C. Expected at time of maturity
D. Expected at deferred call
Related Mcqs:
- Risk affects any firm with factors such as war, recessions, inflation and high interest rates is classified as____________?
A. Diversifiable risk
B. Market risk
C. Stock risk
D. Portfolio risk - An inflation free rate of return and inflation premium is two components of_________?
A. Quoted rate
B. Unquoted rate
C. Steeper rate
D. Portfolio rate - Interest rates, tax rates and market risk premium are factors which an/a_____________?
A. Industry cannot control
B. Industry cannot control
C. Firm must control
D. Firm cannot control - Real risk-free interest rate in addition with an inflation premium is equal to_____________?
A. Required interest rate
B. Quoted risk-free interest rate
C. Liquidity risk-free interest rate
D. Premium risk-free interest rate - 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 - An interest rate which is used in calculation of cash flows of bonds is called______________?
A. Required rate of redemption
B. Required rate of earning
C. Required rate of return
D. Required option - When real rate is high, all the interest rates tend to be ___________?
A. Higher
B. Lower
C. Constant
D. None of These - The treasury bonds and notes pay the interest rate is classified as ________?
A. LIBOR rate monthly
B. coupon interest monthly
C. coupon interest semiannually
D. coupon interest annually - For a taxable security, the tax exempted interest rate on municipal bonds used to determine the ___________?
A. tax equivalent rate of return
B. local rate of return
C. withholding tax rate
D. general sales tax rate - 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
