Financial Management MCQ Questions and Solutions with Explanations

Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 Section 9 Section 10 Section 11 Section 12 Section 13

1.
Rate on debt that increases as soon market rises is classified as

A. rising bet rate

B. floating rate debt

C. market rate debt

D. stable debt rate

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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

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3.
Bonds that can be converted into shares of common stock are classified as

A. convertible bonds

B. stock bonds

C. shared bonds

D. common bonds

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4.
Type of bonds that are issued by foreign governments or foreign corporations are classified as

A. zero risk bonds

B. zero bonds

C. foreign bonds

D. government bonds

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5.
Specific day at which bond value is repaid can be considered as

A. valued date

B. repayment date

C. payment date

D. maturity date

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6.
A usage of proceeds of new issue to retire issue with high-rate is classified as

A. refunding operation

B. funding operation

C. proceeds operation

D. deferred operation

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7.
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

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8.
Rate of return (in percentages) is consists of

A. capital gain yield interest yield

B. return yield + stable yield

C. return yield + instable yield

D. par value + market value

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9.
Reinvestment risk of bonds is usually higher on

A. income bonds

B. callable bonds

C. premium bonds

D. default free bonds

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10.
If market interest rate fall 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

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Financial Management MCQ Questions and Solutions with Explanations | Commerce

1. Rate on debt that increases as soon market rises is classified as

Answer & Solution

2. If market interest rate rises above coupon rate then bond will be sold

Answer & Solution

3. Bonds that can be converted into shares of common stock are classified as

Answer & Solution

4. Type of bonds that are issued by foreign governments or foreign corporations are classified as

Answer & Solution

5. Specific day at which bond value is repaid can be considered as

Answer & Solution

6. A usage of proceeds of new issue to retire issue with high-rate is classified as

Answer & Solution

7. If default probability is zero and bond is not called then yield to maturity is

Answer & Solution

8. Rate of return (in percentages) is consists of

Answer & Solution

9. Reinvestment risk of bonds is usually higher on

Answer & Solution

10. If market interest rate fall below coupon rate then bond will be sold

Answer & Solution

Read More Section(Financial Management)

1.
Rate on debt that increases as soon market rises is classified as

2.
If market interest rate rises above coupon rate then bond will be sold

3.
Bonds that can be converted into shares of common stock are classified as

4.
Type of bonds that are issued by foreign governments or foreign corporations are classified as

5.
Specific day at which bond value is repaid can be considered as

6.
A usage of proceeds of new issue to retire issue with high-rate is classified as

7.
If default probability is zero and bond is not called then yield to maturity is

8.
Rate of return (in percentages) is consists of

9.
Reinvestment risk of bonds is usually higher on

10.
If market interest rate fall below coupon rate then bond will be sold