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