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) 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 2 / 50 2) Mortgage bonds issued by corporations are considered as secured debt issues unsecured debt issues volatile debt issues collateral debt issues 3 / 50 3) Department who is appointed by bond holders as representative or monitor of bonds is considered as trustee trust department monitoring department indenture department trustee 4 / 50 4) 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 5 / 50 5) 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 6 / 50 6) 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 7 / 50 7) 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 8 / 50 8) 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 9 / 50 9) Rules and regulations placed on bond holders and bond issuers are classified in bond covenants private covenants federal covenants expansion covenants 10 / 50 10) 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 11 / 50 11) In best efforts offering, price offered by investment banks is originally set by municipality insurance companies negotiable transactions global placement 12 / 50 12) Promised payments on Eurobonds will be paid in currency of denomination currency of home country currency of Australia currency of local market 13 / 50 13) In financial markets, separate trading of registered interest and principal securities have abbreviation of STORI STRIPS RIAPS STORIAP 14 / 50 14) 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 15 / 50 15) For municipal bonds, initial market is through local placement public offering government placement index placement 16 / 50 16) Foreign bonds issued in Japan financial institutions are classified as bull dog bonds bull cat bonds Yankee bonds samurai bonds 17 / 50 17) According to marketability feature, bonds which are attached to stock warrants have decreased floatation increased floatation increased marketability decreased marketability 18 / 50 18) Factors considered by rating agencies on issuing bonds are position in industry overall financial strength issuer all of these 19 / 50 19) Eurobonds are issued by financial firms to avoid taxes avoid interest hike avoid high floating rate avoid portfolio issues 20 / 50 20) Coupon payment accrued between last payment and settlement date is classified as paid interest unpaid interest zero interest accrued interest 21 / 50 21) Type of rating to which all credit rating agencies does not consider is classified as split rating sinking rating automated rating floating rating 22 / 50 22) Longer debt instrument issued by government and corporations is considered as contraction bonds expansion bonds dollar bonds bonds 23 / 50 23) 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 24 / 50 24) Banks, mutual funds and insurance companies are considered as major suppliers major investors major portfolio holders major rates decider 25 / 50 25) 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 26 / 50 26) In financial markets, bond indenture results in lower federal rate higher federal rate higher risk lower risk 27 / 50 27) Bonds issued by corporations for relatively longer term are classified as long term bonds short term bonds corporate bonds Federal Reserve bonds 28 / 50 28) Minimum denominations of municipal bonds are $5,000 $10,000 $12,000 $22,000 29 / 50 29) Municipal bonds are securities issued by local and state schools governments city and country all of these 30 / 50 30) 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 31 / 50 31) As compared to non-convertible bonds, yield on convertible bond is relatively lower relatively higher relatively zero relatively discounted 32 / 50 32) As compared to general obligation bonds, revenue bonds are considered as more inflated less inflated less risky more risky 33 / 50 33) 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 34 / 50 34) Financial instruments such as treasury bonds and notes have lesser cost fluctuations wider price fluctuations less price fluctuations wider cost fluctuations 35 / 50 35) 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% 36 / 50 36) Interest rate on floating rate Eurobonds is paid annually semi-annually monthly quarterly 37 / 50 37) To improve attractiveness for investors, bonds are partially backed by US.T-Bonds UK-T-Bonds UK-B-bonds US-B-Bonds 38 / 50 38) Bonds that are considered as junk bonds and termed as higher yield are classified as expansion debentures premium debentures subordinated debentures ordinate debentures 39 / 50 39) 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 40 / 50 40) If maturity date of bond is closer than premium of bond will be relatively lower relatively higher quantifiable not be quantifiable 41 / 50 41) Names of foreign bonds are used to denote country of premium country of origin country of selling country of discount 42 / 50 42) If revenue bonds becomes default, bondholders must not be paid be paid be sold not be sold 43 / 50 43) Price accepted in single bid auction system is one which is most lowest most highest least lowest least highest 44 / 50 44) Treasury bills are issued on treasury basis corporate basis premium basis discount basis 45 / 50 45) Default risk is measured by large traders, managers and investors with help of sinking analysis analyzing financial ratios portfolio scenario value automated machine analysis 46 / 50 46) 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 47 / 50 47) 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 48 / 50 48) Type of Eurobonds which are convertible are considered as related to international market related to equity related to common stock related to national market 49 / 50 49) Dimensions in bonds markets are treasury notes and bonds corporate bonds municipal bonds all of these 50 / 50 50) Call premium is $456 and face value of bond is $234 then call price of bonds is $1.95 1.95% $222 $690 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 review with 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