Securities Market

Which of the following is true regarding Fixed Income Securities

• FIS always carry a fixed rate of coupon

• FIS always have a fixed maturity

• FIS are always redeemed at the end of maturity

• None of the above

In what market scenario, would an issuer generally exercise a call option in a callable bond

• Falling interest rates

• Rising interest rates

• Rising inflation

• Option exercise has nothing to do with interest rates or inflation

For a plain vanilla bond, when would an issuer generally issue a bond at discount

• When the coupon rate is less than average expected yield of investors

• When the coupon rate is more than average expected yield of investors

• When the issuer's credit rating is very low

• When the bond is unsecured

Which of these Fixed Income Market intermediary is not regulated by SEBI?

• Merchant Banks

• Debenture Trustees

• Primary Dealers

• Credit Rating Agencies

Which of these bonds can help in mitigating inflation risk for the investor?

• Zero Coupon bonds

• Fixed rate bonds

• Floating rate bonds

• Inflation Indexed Bonds

Which of these bonds would generally have highest credit risk?

• Government bonds

• Investment Grade bonds

• High yield bonds

• Junk bonds

Which of these is not an example of credit risk?

• Default by the issuer

• Downgrade of credit rating

• Widening of Credit Spreads

• Early redemption by issuer by exercising Call option

Which of these bonds will generally have least amount of interest rate risk?

• Zero Coupon bonds

• Fixed rate bonds

• Floating rate bonds

• Inverse Floaters

Which of these securities is not Fixed Income Security?

• Debentures

• Preference Shares

• Commercial Papers

• None of the above

Which of these securities would not generally form part of Money Market Securities

• Treasury bills

• Commercial papers

• Debentures

• None of the above