International Finance and Treasury – Set 9 January 29, 2025 by aasi Home › Management › International Finance and Treasury International Finance and Treasury International Finance and Treasury – Set 9 📝 Model Practice Set ⚡ Instant Answers & Explanation 🎯 Exam Oriented 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 9 Dear ! This is International Finance and Treasury – Set 9 Quiz and it contains 50 questions. Keep Learning! 1 / 50 1) Interest rate on Eurobonds are paid monthly quarterly annually semi-annually 2 / 50 2) When bonds are called and redeem, they must be ceased to earn interest pay interest earn floating rate earn funding rate 3 / 50 3) Non-competitive bids of securities are submitted through federal savings bank state savings banks Federal Reserve banks state reserve banks 4 / 50 4) In firm commitment underwriting, securities issued are then sold to investors at relatively higher price lower price indexed price commercial price 5 / 50 5) Bonds rated lower than triple-B bonds by Standard and Poor’s are considered as split bonds automated bonds junk bonds sinking bonds 6 / 50 6) Municipal bonds are traded to finance short term capital outlays long term capital outlays long term finance outlays long term bonds outlays 7 / 50 7) In New York Stock exchange, fully automated information and trading system which allows to execute orders for bonds is classified as secondary stock system primary stock system automated stock system automated bond system 8 / 50 8) Current market price is multiplied to conversion rate received on conversion to calculate conversion value current value market value stock value 9 / 50 9) Risk associated with Eurobonds and usually bears by underwriters is related to company annual sale future sale of bonds past sale of bonds initial sale of bond 10 / 50 10) In US treasury, inflation indexed bond is classified as treasury inflation protection securities treasury inflation protection notes treasury inflation commercial papers inflation coupon protection securities 11 / 50 11) Year in which Eurobonds are issued for first time in financial markets is 1963 1953 1983 1962 12 / 50 12) Holders of debentures receive their payments or bonds yields only after holders of registered debt holders secured debt holders unsecured debt holders unregistered debt holders 13 / 50 13) Treasury securities are considered as exempted from federal taxes local and state taxes federal discounts deferral premium 14 / 50 14) Types of notes and bonds issued by Treasury are fixed principal inflation indexed coupon index both a and b 15 / 50 15) For municipal bonds, trading in secondary markets are classified as infrequent origination static trading frequent trading infrequent trading 16 / 50 16) To make promised payments, federal money can raise taxes print money increase labour hours both a and b 17 / 50 17) Bonds that can be exchanged with other stock issued by same firm are classified as discount convertible bonds convertible bonds non-convertible bonds premium convertible bonds 18 / 50 18) Bonds that are usually unsecured and are only backed by worthiness of issuing firm are classified as untimed indentures untimed debentures indentures debentures 19 / 50 19) Bond which is denominated in dollars and is issued in European financial markets is considered as Australian bonds Eurobonds interbank bonds interbank bonds 20 / 50 20) Private placed stock and privately placed bonds are considered as most illiquid securities most liquid securities least liquid securities least illiquid securities 21 / 50 21) Value of option issued to call debt is $940 and return rate on callable bond is $480 then return rate on non-callable bond is $460 $1,520 $1,420 $1,620 22 / 50 22) Principal amount in Treasury Inflation Protection Securities is considered as tax adjusted principal inflation adjusted principal auction adjusted principal premium adjusted principal 23 / 50 23) If price at which stock is purchased exceeds market value then stock warrants will be exercised not be exercised be discounted not be discounted 24 / 50 24) Information about sovereign borrowers and corporate borrowers is generated by the bond rating agencies bond issuance agencies federal placement private pavement agencies 25 / 50 25) Principal amount in Treasury Inflation Protection Securities is considered as tax adjusted principal inflation adjusted principal auction adjusted principal premium adjusted principal 26 / 50 26) Reason of default risk on municipal bonds is because of economic recession economically indexed not economically indexed active trading 27 / 50 27) Type of markets which trades underwritten bonds syndicated by some other countries is classified as international markets national markets local markets state markets 28 / 50 28) Type of bonds that have tangible property as a collateral are classified as collateral security commercial trust notes equipment trust certificates equipment bonds 29 / 50 29) Rate of return on non-callable bonds is $680 and value of issuer option is $450 then return on callable bond is $230 1.52% $1.52 $1,130 30 / 50 30) Temporary imbalances between operating receipts and operating expenditures are funded with help of state bonds federal bonds municipal bonds reserve bonds 31 / 50 31) Yields of municipal bonds is after tax rate of return before tax rate of return corporative rate of return federal rate of return 32 / 50 32) Value of option issued to call debt is $670 and return rate on callable bond is $540 then return rate on non-callable bond is $1,210 $1,010 $130 $1,020 33 / 50 33) Suppliers and demanders of long term investment funds are work closely in bond markets classical set markets open end markets close end markets 34 / 50 34) Issued bond which is considered as hybrid bond is called non-convertible bonds premium convertible bonds discount convertible bonds convertible bonds 35 / 50 35) Denominations in which Eurobonds are issued are $10000 and $20000 $5000 and $10000 $6000 and $11000 $8000 and $15000 36 / 50 36) Conversion values is $7000 and conversion rate received on stock conversion is 370 then current market price of stock is $16.92 $18.92 $13.92 $11.92 37 / 50 37) Number of covenants related to issued bonds are included in private indenture bond indenture long term indenture federal indenture 38 / 50 38) Bonds with coupon are attached to bond for paying interest when it becomes due are classified as trustee bonds local bonds bearer bonds nearer bonds 39 / 50 39) If bonds are used as an investment vehicle by investors of institutions then bond must be automated discounted rated stocked 40 / 50 40) Foreign bonds issued in United States financial institutions are classified as bull dog bonds bull cat bonds Yankee bonds samurai bonds 41 / 50 41) STRIPS are used effectively to receive One set of payment Two sets of payments Three sets of payments Four sets of payments 42 / 50 42) Rate of return on non-callable bonds is $370 and value of issuer option is $250 then return on callable bond is $120 1.48% $620 $1.48 43 / 50 43) Price of treasury notes and treasury bonds without including accrued interest is classified as clean price full price dirty price accrued price 44 / 50 44) Type of sale in which investment bank got rights to underwrite, distribute and originate new bonds is classified as least effort sale effortless sale negotiated sale negotiated sale 45 / 50 45) Private placement of issues is consisted as registered issue unregistered issue federal issue negotiable issue 46 / 50 46) Rate of return on non-callable bonds is $890 and value of issuer option is $670 then return on callable bond is 1.33% $1,560 $220 $1.33 47 / 50 47) Foreign bonds that are issued before Eurobonds are also called as traditional international bonds traditional local bonds traditional global bonds traditional currency bonds 48 / 50 48) Thin trading of municipal bonds in secondary markets is because of excess of information lack of information frequent information infrequent information 49 / 50 49) As compared to public issues, interest premiums on privately placed issues overtime have increased increased floatation rate decreased zero interest coupon 50 / 50 50) Call premium of bond is $630 and call price of bond is $240 then face value of bond is 2.63% $870 $390 $2.63 Your score isThe average score is 0%🎉 Challenge alert! 💡 Share this quiz with your friends and 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