The Yield to Maturity of a bond is the same as_____________?

Related Mcqs:

1. If default probability is zero and bond is not called, then yield to maturity is_____________?

   A. Mature expected return rate
   B. Lower than expected return rate
   C. Higher than expected return rate
   D. Equal to expected return rate

2. Between the two identical bonds having different maturity periods, the price of the ______ bond will change less than that of ______ bond.

   A. long-term; short-term
   B. short-term; long-term
   C. lower-coupon; higher-coupon
   D. None of the given options

3. If the maturity date of the bond is closer than the premium of bond will be ________?

   A. relatively lower
   B. relatively higher
   C. quantifiable
   D. not be quantifiable

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