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International Finance and Treasury MCQ Questions and Solutions with Explanations | Management

International Finance and Treasury MCQ Questions and answers with easy and logical explanations. Management provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. International FinanceMCQ is important for exams like MAT, CAT, CA, CS, CMA, CPA, CFA, UPSC, Banking and other Management department exam. Page-4 section-3

Each section contains 100 MCQs on International Finance and Treasury .
31
As compared to Treasury bonds, trading of municipal bonds in trading market is considered as
Discuss
Answer & Solution
Answer: Option C
Solution:
As compared to Treasury bonds, trading of municipal bonds in trading market is considered as less active.
32
Current selling price of municipal bonds available to bond holders is used to calculate
Discuss
Answer & Solution
Answer: Option B
Solution:
Current selling price of municipal bonds available to bond holders is used to calculate yield to municipal bonds.
33
Call premium is $640 and face value of bond is $285 then call price of bonds is
Discuss
Answer & Solution
Answer: Option C
Solution:
Call price of bonds = Call premium + Face value of bond
= $640 + $285 = $925.
34
Call premium is $456 and face value of bond is $234 then call price of bonds is
Discuss
Answer & Solution
Answer: Option D
Solution:
Call price of bonds = Call premium + Face value of bond
= $456 + $234 = $690.
35
According to marketability feature, bonds which are attached to stock warrants have
Discuss
Answer & Solution
Answer: Option C
Solution:
According to marketability feature, bonds which are attached to stock warrants have increased marketability.
36
Bonds issued by corporations for relatively longer term are classified as
Discuss
Answer & Solution
Answer: Option C
Solution:
Bonds issued by corporations for relatively longer term are classified as corporate bonds. A corporate bond is a debt security issued by a corporation and sold to investors. The backing for the bond is usually the payment ability of the company, which is typically money to be earned from future operations. In some cases, the company's physical assets may be used as collateral for bonds.
37
Rate of return on non-callable bonds is added into value of issuer option to calculate
Discuss
Answer & Solution
Answer: Option B
Solution:
Rate of return on non-callable bonds is added into value of issuer option to calculate return on callable bond. A callable bond is a debt instrument in which the issuer reserves the right to return the investor's principal and stop interest payments before the bond's maturity date.
38
Principal value of TIPS is increased or decreased and is based on measure of
Discuss
Answer & Solution
Answer: Option A
Solution:
Principal value of TIPS is increased or decreased and is based on measure of consumer price index. The Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care. It is calculated by taking price changes for each item in the predetermined basket of goods and averaging them.
39
As compared to non-convertible bonds, yield on convertible bond is
Discuss
Answer & Solution
Answer: Option A
Solution:
As compared to non-convertible bonds, yield on convertible bond is relatively lower. At face value, the interest rate on a convertible bond is actually lower than that found on nonconvertible bonds.
40
Face value of bond is $450 and call price of bond is $250 then value of call premium is
Discuss
Answer & Solution
Answer: Option B
Solution:
Value of call premium = Face value of bond - Call price of bond
= $450 - $250 = $200.