Which of the following statement about bond ratings is TRUE?

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. Considering the ratings, the bonds that have lowest spread of interest as compared to similar maturity in Treasury Securities are classified as ______________?

   A. triple B rating bonds
   B. triple A rating bonds
   C. double A rating bonds
   D. double A rating bonds

8. The face value of the bond is $685 and the call price of bond is $378 then the value of call premium is

   A. 307
   B. 1063
   C. 2063
   D. 3063

9. The value of option issued to call debt is $780 and return rate on callable bond is $370 then return rate on non-callable bond is ___________?

   A. 1250
   B. 1150
   C. 1350
   D. 410

10. The value of option issued to call debt is $670 and return rate on callable bond is $540 then return rate on non-callable bond is ____________?

    A. 1210
    B. 1010
    C. 130
    D. 1020