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

Correct Answer: premium bond

Type of bond for which bonds present value is greater than bonds face value is classified as premium bond. A premium bond is a bond trading above its face value or in other words; it costs more than the face amount on the bond. A bond might trade at a premium because its interest rate is higher than current rates in the market.
Bissoy MCQ
#Management #International Finance And Treasury

Related Questions

If Taka 4,500 was invested in bonds of a corporation when the price per bond was Tk. 9.00 and Taka 3,000 was invested in bonds of another corporation when the price was Tk. 10.00 per bond, what was the average price of bonds purchased?
A Tk. 9.625
B Tk. 9.50
C Tk. 9.40
D Tk. 9.375
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 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
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
Bonds which are more risky than corporate bonds and are issued by major corporations are classified as
A common stocks
B corporate stocks
C leases
D preferred stocks
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
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

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