A. Long-term bonds
B. Short-term bonds
C. Internal term bonds
D. External term bonds
Related Mcqs:
- In capital budgeting, the term of bond which has great sensitivity to interest rates is __________?
A. long-term bonds
B. short-term bonds
C. internal term bonds
D. external term bonds - 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 - 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 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 - 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 - In capital budgeting, two projects having cost of capital as 12% is classified as __________?
A. hurdle rate
B. capital rate
C. return rate
D. budgeting rate - An inflation rate includes in bond’s interest rates is one which is inflation rate________?
A. At bond issuance
B. Expected in future
C. Expected at time of maturity
D. Expected at deferred call
