A. Mature expected return rate
B. Lower than expected return rate
C. Higher than expected return rate
D. Equal to expected return rate
Related Mcqs:
- 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 - The Yield to Maturity of a bond is the same as_____________?
A. The present value of the bond
B. The bonds internal rate of return
C. The future value of the bond
D. None of these - Cost of common stock is 16% and bond yield is 9% then bond risk premium would be_________?
A. 7%
B. 8%
C. 1.78%
D. 25% - Between the two identical bonds having different maturity periods, the price of the ______ bond will change less than that of ______ bond.
A. long-term; short-term
B. short-term; long-term
C. lower-coupon; higher-coupon
D. None of the given options - 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 - 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 - 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 - 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 - 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 - 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
