Chap 4: DEBT MARKET

Câu 1: Which kind of bonds allows for exchange to shares of a corporation other than the issuer?

• Convertible bond

• Exchangeable bond

• Callable bond

• Government bond

Câu 2:... is a kind of bond that its principal amount and the interest payments are indexed to the price index such as inflation

• Junk bond

• Linker

• Perpetuity

• Municipal bond

Câu 3: Which sentence is not true for the unsecured bonds?

• Unsecured bonds are issued without any pledged assets

• Unsecured bonds are secured by the prestige of the issuing organizations

• Unsecured bonds are secured by the common assets of the issuers in the event of bankruptcy

• Unsecured bonds will receive nothing from issuers in the case of bankruptcy

Câu 4: Which type of bond is issued by local authorities?

• Government bond

• Municipal bond

• Corporate bond

• Short-term bond

Câu 5.Which type of bonds has a coupon that remains constant throughout the life of the bond?

• Coupon bond

• Floating rate note

• Zero-coupon bond

• Deep discount bond

Câu 6. Debt instruments represent a contractual claim against an issuer to make specific payments, including ..., over a defined period

• Periodic interest payments

• Principal repayments

• Both of the above

• None of the above

Câu 7: Which type of instruments is not defined as debt instruments?

• Bond

• Unsecured notes

• Term loans

• Stock

Câu 8: Which of the following sentences is true for Treasury Inflation protected securities (TIPS)?

• Coupon rate is set at a fixed rate, and the principal is fixed

• Coupon rate is adjusted for inflation, and the principal is fixed

• Coupon rate is set at a fixed rate, and the principal is adjusted semiannually for inflation

• Coupon rate is adjusted for inflation, and the principal is adjusted for inflation

Câu 9: Treasury bills are issued on:

• Treasury basis

• Corporate basis

• Premium basis

• Discount basis

Câu 10. Junk bonds which are rated lower than triple B are also classified as:

• High yield bonds

• Low yield bond

• Zero floating bonds

• High floating rate bonds