Type of bond whose present value is lesser than that of its face value is classified as

A discount bond
B premium bond
C coupon bond
D interest bonds

Correct Answer: discount bond

Type of bond whose present value is lesser than that of its face value is classified as discount bond. A discount bond is a bond that is issued for less than its par or face value. Discount bonds may also be a bond currently trading for less than its face value in the secondary market.
Bissoy MCQ
#Management #International Finance And Treasury

Related Questions

A bond gets matured in 10 years . invested TK. 42,000 in this bond and received Tk. 105000 once the bond matured . If the bond was under simple interest . then what was the rate of interest per annum?
A 10%
B 12.5%
C 15%
D 7.5%
Type of bond for which bonds present value is greater than bonds face value is classified as
A coupon bond
B interest bonds
C discount bond
D premium bond
A bond whose price will rise above its face value is classified as
A premium face value
B premium bond
C premium stock
D premium warrants
Bond which is offered below its face value is classified as
A present value bond
B original issue discount bond
C coupon issued bond
D discounted bond
Which one of the following species has the highest bond order, shortest bond length and maximum bond strength?
A O2
B O+2
C O-2
D O-22
Difference between face value of bond and call price of bond is considered as
A call premium
B call provision
C discount premium
D discount provision
A Collection of 16 coins,each with a face value of either 10 paisa or 25 paisa, has a total face value of Tk. 2.35 How many of the coins have a face value of 25 paisa?
A 3
B 5
C 7
D 9
A collection o 16 coins , each with a face value either 10 paisa or 25 paisa, has a total face value of Tk. 2.35. How many of the coins have a face value of 25 paisa/
A 3
B 5
C 7
D 9
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.
Farhan scored more runs than Raju. Simran scored more runs than Nitu but lesser runs than Raju. Who scored the highest runs?
A Nitu
B Farhan
C Simran
D Raju

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