The bond holder can make profit by returning the bonds and exchanging with other securities, if market value with conversion value

Related Mcqs:

1. 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...

2. 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...

3. 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...

4. The conversion values is $8500 and the conversion rate received on stock conversion is 430 then current market price of stock is _________?

   A. 15.24 B. 13.24 C. 20.24 D. 19.24...

5. The conversion values is $9500 and the conversion rate received on stock conversion is 460 then current market price of stock is ____________?

   A. 12.65 B. 15.65 C. 17.65 D. 20.65...

6. The conversion values is $7000 and the conversion rate received on stock conversion is 370 then current market price of stock is __________?

   A. 16.92 B. 18.92 C. 13.92 D. 11.92...

7. According to the bond holder point of view, the bonds issued with sinking fund provision are classified as __________?

   A. floating risk discount B. less risky C. more risky D. floating risk premium...

8. 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...

9. 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...

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...