Which of the following relationships holds TRUE if a bond sells at a discount?

Related Mcqs:

1. 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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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