Rate on debt that increases as soon market rises is classified as________?

Related Mcqs:

1. An interest rate which is paid by firm as soon as it issues debt is classified as pre-tax__________?

   A. Term structure B. Market premium C. Risk premium D. Cost of debt...

2. If market interest rate rises above coupon rate, then bond will be sold_____________?

   A. Equal to return rate B. Seasoned price C. Below its par value D. Above its par value...

3. Coupon payment is calculated with help of interest rate, then this rate considers as________?

   A. Payment interest B. Par interest C. Coupon interest D. Yearly interest rate...

4. The value of option issued to call debt is subtracted from rate of return on callable bond to calculate the rate of return on ____________?

   A. contributed bonds B. non-callable bonds C. callable bonds D. discounted bonds...

5. 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...

6. 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...

7. The value of option issued to call debt is $940 and return rate on callable bond is $480 then return rate on non-callable bond is __________?

   A. 460 B. 1520 C. 1420 D. 1620...

8. Rate of return which is required to satisfy stockholders and debt holders is classified as__________?

   A. Weighted average cost of interest B. Weighted average cost of capital C. Weighted average salvage value D. Mean cost of capital...

9. Rate of required return by debt holders is used for estimation the__________?

   A. Cost of debt B. Cost of equity C. Cost of internal capital D. Cost of reserve assets...

10. If market interest rate falls below coupon rate then bond will be sold__________?

    A. Below its par value B. Above its par value C. Equal to return rate D. Seasoned price...