International Finance and Treasury – Set 11 January 29, 2025 by aasi 0% Report a question What’s wrong with this question? You cannot submit an empty report. Please add some details. 1234567891011121314151617181920212223242526272829303132333435363738394041424344454647484950 International Finance and Treasury – Set 11 Dear ! This is International Finance and Treasury – Set 11 Quiz and it contains 50 questions. Keep Learning! 1 / 50 1) Banks, mutual funds and insurance companies are considered as major suppliers major investors major portfolio holders major rates decider 2 / 50 2) Price accepted in single bid auction system is one which is most lowest most highest least lowest least highest 3 / 50 3) Minimum denominations of municipal bonds are $5,000 $10,000 $12,000 $22,000 4 / 50 4) Type of Eurobonds which are convertible are considered as related to international market related to equity related to common stock related to national market 5 / 50 5) Conversion values is $8500 and conversion rate received on stock conversion is 430 then current market price of stock is $15.24 $13.24 $20.24 $19.24 6 / 50 6) Call premium of bond is subtracted from call price of bond to calculate face value of bond face value of stock book value of stock book value of bond 7 / 50 7) Value of conversion option to bond holder is $550 and rate of return on non-convertible bond is $270 then rate of return on convertible bond is 2.04% $2.04 $280 $820 8 / 50 8) Value of option issued to call debt is subtracted from rate of return on callable bond to calculate rate of return on contributed bonds non-callable bonds callable bonds discounted bonds 9 / 50 9) Treasury bills are issued on treasury basis corporate basis premium basis discount basis 10 / 50 10) Longer debt instrument issued by government and corporations is considered as contraction bonds expansion bonds dollar bonds bonds 11 / 50 11) Principal value of TIPS is increased or decreased and is based on measure of consumer price index manufacturing price index auction selling index inflation payment index 12 / 50 12) Municipal bonds are securities issued by local and state schools governments city and country all of these 13 / 50 13) Bonds that are considered as junk bonds and termed as higher yield are classified as expansion debentures premium debentures subordinated debentures ordinate debentures 14 / 50 14) Conversion values is $9500 and conversion rate received on stock conversion is 460 then current market price of stock is $12.65 $15.65 $17.65 $20.65 15 / 50 15) Yield on subordinated bonds as compared to non-subordinated bonds is considered as highly risky and higher yields highly risky and lower yields less risky and higher yields less risky and lower yields 16 / 50 16) Financial instruments such as treasury bonds and notes have lesser cost fluctuations wider price fluctuations less price fluctuations wider cost fluctuations 17 / 50 17) If maturity date of bond is closer than premium of bond will be relatively lower relatively higher quantifiable not be quantifiable 18 / 50 18) To improve attractiveness for investors, bonds are partially backed by US.T-Bonds UK-T-Bonds UK-B-bonds US-B-Bonds 19 / 50 19) If revenue bonds becomes default, bondholders must not be paid be paid be sold not be sold 20 / 50 20) For municipal bonds, initial market is through local placement public offering government placement index placement 21 / 50 21) In financial markets, bond indenture results in lower federal rate higher federal rate higher risk lower risk 22 / 50 22) Type of bond in which coupon payment is mailed registered bondholders and owner is recorded by issuing company is classified as unregistered bonds indenture bonds trustee bonds registered bonds 23 / 50 23) Marginal income tax rate is 35% and before tax rate of return is 12.5% then after tax rate of return is 6.13% 7.13% 8.13% 9.13% 24 / 50 24) Face value of bond is $450 and call price of bond is $250 then value of call premium is 1.80% $200 $700 $1.80 25 / 50 25) Mortgage bonds issued by corporations are considered as secured debt issues unsecured debt issues volatile debt issues collateral debt issues 26 / 50 26) Interest rate on floating rate Eurobonds is paid annually semi-annually monthly quarterly 27 / 50 27) Dimensions in bonds markets are treasury notes and bonds corporate bonds municipal bonds all of these 28 / 50 28) Eurobonds are issued by financial firms to avoid taxes avoid interest hike avoid high floating rate avoid portfolio issues 29 / 50 29) Financial securities which are issued to finance government expenditures and national debt are classified as treasury notes and bonds contraction bonds expansion bonds dollar bonds 30 / 50 30) Type of rating to which all credit rating agencies does not consider is classified as split rating sinking rating automated rating floating rating 31 / 50 31) Junk bonds which are rated lower than triple B are also classified as high yield bonds low yield bonds zero floating bonds high floating rate bonds 32 / 50 32) Call premium is $456 and face value of bond is $234 then call price of bonds is $1.95 1.95% $222 $690 33 / 50 33) Issues sold by investment banks and guarantees issuer by buying new issue at fixed price is classified as index commitment underwriting insurance underwriting default risk underwriting firm commitment underwriting 34 / 50 34) In financial markets, separate trading of registered interest and principal securities have abbreviation of STORI STRIPS RIAPS STORIAP 35 / 50 35) Promised payments on Eurobonds will be paid in currency of denomination currency of home country currency of Australia currency of local market 36 / 50 36) As compared to non-convertible bonds, yield on convertible bond is relatively lower relatively higher relatively zero relatively discounted 37 / 50 37) As compared to general obligation bonds, revenue bonds are considered as more inflated less inflated less risky more risky 38 / 50 38) Bonds issued by corporations for relatively longer term are classified as long term bonds short term bonds corporate bonds Federal Reserve bonds 39 / 50 39) In best efforts offering, price offered by investment banks is originally set by municipality insurance companies negotiable transactions global placement 40 / 50 40) Default risk is measured by large traders, managers and investors with help of sinking analysis analyzing financial ratios portfolio scenario value automated machine analysis 41 / 50 41) Rate of return on non-callable bonds is added into value of issuer option to calculate return on assets return on callable bond return on non-callable bonds return on equity 42 / 50 42) Foreign bonds issued in Japan financial institutions are classified as bull dog bonds bull cat bonds Yankee bonds samurai bonds 43 / 50 43) Coupon payment accrued between last payment and settlement date is classified as paid interest unpaid interest zero interest accrued interest 44 / 50 44) Rules and regulations placed on bond holders and bond issuers are classified in bond covenants private covenants federal covenants expansion covenants 45 / 50 45) Names of foreign bonds are used to denote country of premium country of origin country of selling country of discount 46 / 50 46) Factors considered by rating agencies on issuing bonds are position in industry overall financial strength issuer all of these 47 / 50 47) Department who is appointed by bond holders as representative or monitor of bonds is considered as trustee trust department monitoring department indenture department trustee 48 / 50 48) Debentures that are considered as junior bonds as compared to debentures and mortgage bonds are classified as subordinated debentures ordinate debentures expansion debentures premium debentures 49 / 50 49) According to marketability feature, bonds which are attached to stock warrants have decreased floatation increased floatation increased marketability decreased marketability 50 / 50 50) As compared to publicly placed issues, privately placed bonds are issued for lower paid interest rates higher paid interest rates registered interest rates unregistered interest rates Your score isThe average score is 0%🎉 Challenge alert! 💡 Share this quiz with your friends and see who scores the highest! 🏆🤩🔥 LinkedIn Facebook Follow Us @ 0% Restart quiz Exit We’d love to hear your thoughts! 📝 Share your valuable 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