• Finance Quiz – 12

    111 Compared to zero coupon bond, coupon bonds have more
      A) Credit risk
      B) Reinvestment Risk
      C) Call Risk
      D) Yield Curve Risk
       
    112 For Bonds, which of these risk is related to government policies and intentions?
      A) Sovereign Risk
      B) Exchange rate risk
      C) Credit risk
      D) Liquidity Risk
       
    113 For Bond pricing, higher yield rate than coupon rate leads to?
      A) Premium pricing to par value
      B) Discount pricing to par value
      C) Pricing does not change
      D) Pricing equal to par value
       
    114 For Bond pricing, lower yield rate than coupon rate leads to?
      A) Premium pricing to par value
      B) Discount pricing to par value
      C) Pricing does not change
      D) Pricing equal to par value
       
    115 For Bond investment, Interest risk goes up when?
      A) Add Call Option
      B) Add Put option
      C) Maturity increases
      D) Coupon rate increases
       
    116 For Bond investment, Duration increases when?
      A) Add Call Option
      B) Add Put option
      C) Maturity increases
      D) Coupon rate increases
       
    117 A bond security can have higher re-investment risk when?
      A) The coupon rate is lower
      B) It has embedded call option
      C) It has embedded put option
      D) It does not contain prepayment option
       
    118 With the increase in risk Yield rate on a bond?
      A) Decreases
      B) Increases
      C) No relationship exists
      D) Stays unchanged
       
    119 Which in the list increases the bond price?
      A) Embedded put option
      B) Embedded call option
      C) Lower Credit rating
      D) Lower Coupon rate
       
    120 Which of the securities issued by the USA governmetn has the lowest maturity period?
      A) Notes
      B) Bills
      C) Bonds
      D) Zero Coupon bonds

     

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