A. faces a high profit
B. faces a loss
C. face a inflation
D. face an index risk
Related Mcqs:
- 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 - As compared to Treasury bonds, the trading of municipal bonds in trading market is considered as _________?
A. more index inflation
B. less indexed inflation
C. less active
D. more active - The current selling price of the municipal bonds available to bond holders is used to calculate
A. yield to income tax
B. yield to municipal bonds
C. yield to tax rate
D. yield to revenue bonds - If you plan to save Rs. 5,000 with a bank at an interest rate of 8%, what will be the worth of your amount after 4 years if interest is compounded annually?
A. Rs. 5,400
B. Rs. 5,900
C. Rs. 6,600
D. Rs. 6,802 - 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 - 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 - The issuance of securities in which investment bank does not guarantee back up price and act as distributor, in planning of issue is considered as ____________?
A. best efforts offering
B. least good index
C. least good premium
D. least good discount price - 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 - The type of sale in which the investment bank got the rights to underwrite, distribute and originate new bonds is classified as __________?
A. least effort sale
B. effortless sale
C. negotiated sale
D. negotiated sale - The price of treasury notes and treasury bonds without including accrued interest is classified as ____________?
A. clean price
B. full price
C. dirty price
D. accrued price
