Which one of the following terms refers to the risk arises for bond owners from fluctuating interest rates?

Related Mcqs:

1. 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...

2. An effect of interest rate risk and investment risk on a bond’s yield is classified as_________?

   A. Reinvestment premium B. Investment risk premium C. Maturity risk premium D. Defaulter’s premium...

3. Sum of market risk and diversifiable risk are classified as total risk which is equivalent to_______________?

   A. Sharpe’s alpha B. Standard alpha’s C. Alpha’s variance D. Variance...

4. 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%...

5. 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...

6. 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...

7. 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...

8. 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...

9. 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...

10. 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...