Yield of interest rate which is below than coupon rate, this yield is classified as

A yield to maturity
B yield to call
C yield to earning
D yield to investors

Correct Answer: yield to call

Yield of interest rate which is below than coupon rate, this yield is classified as yield to call. Yield to call (YTC) is a financial term that refers to the return a bondholder receives if the security is held until the call date, before the debt instrument reaches maturity.
Bissoy MCQ
#Commerce #Financial Management

Related Questions

Bonds with coupon are attached to bond for paying interest when it becomes due are classified as
A trustee bonds
B local bonds
C bearer bonds
D nearer bonds
Type of bond in which coupon payment is mailed registered bondholders and owner is recorded by issuing company is classified as
A unregistered bonds
B indenture bonds
C trustee bonds
D registered bonds
Arman wanted to have Tk. 39,200 as interest after 5 years. He has invested an amount in an account for 1 year at 8% interest rate. From the 2nd year, he invested the principal amount in another account offering 10% interest for 3 years. At the beginning of the fifth year he invested the Principal amount in another account at the rate of 11%. What was the principal amount? (assume simple interest rate)
A Tk. 50,000
B Tk. 80,000
C Tk. 70,000
D Tk. 90,000
E None of them
L is older than M and taller than N. O is younger than P, older than N and shorter than Q. R is older than S, younger than N, shorter than S and taller than Q. S is older than L, M, O, P, Q, R and S is necessarily false?
A O is the shortest of the group.
B N is the second tallest of the group.
C L is the tallest of the group.
D Q is the third oldest of the group.
Reena took a loan of Tk. 1200 with simple interest for as many years as the rate of interest. If she paid Tk. 432 as interest at the end of the loan period, what was the rate of interest?
A 3.6
B 6
C 18
D None of these
Hasib took a loan of 1400 tk with simple interest for as many years as the rate of interest. If he paid 126 th as interest at the end of the loan period , what was the rate of interest?
A 3%
B 6%
C 9%
D 12%
Reena took a loan of Rs. 1200 with simple interest for as many years as the rate of Interest. If she paid Rs. 432 as interest at the end of the loan period, what was the rate of interest?
A 3.6
B 6
C 18
D cannot be determined
Coupon payment of bond which is fixed at time of issuance
A remains same
B becomes stable
C becomes change
D becomes low
What will be the price of the bond if, it is a bond with one year to maturity, paying a 4% coupon semi-annually on a per value of tk. 100 and a Y(TM) of 6%?
A 101.0
B 100.0
C 111.0
D 112.0
জিরো কুপন বন্ড বিক্রয় করা হয়___।(Zero-Coupon Bond is sold at___.)
A অবহারে (discount)
B অধিহারে (premium)
C বাজার মূল্যে (market value)
D অভিহিত মূল্যে (face value)

Next steps