Capital and Shares Quiz

What is the coupon rate?

• The rate of return on a stock

• The rate of interest paid on a bond

• The face value of a bond

• The market value of a stock

How many types of coupon rates are there?

• 1

• 2

• 3

• 4

What is a fixed coupon rate?

• The rate of interest that changes periodically

• The rate of interest that remains constant until maturity

• The rate of return on a stock

• The market value of a bond

What is a floating coupon rate?

• The rate of interest that remains constant

• The rate of interest that can change if required

• The rate of return on a stock

• The face value of a bond

How many types of share issues are there?

• 1

• 2

• 3

• 4

What is issuing shares at par value?

• Issuing shares below face value

• Issuing shares at their face value

• Issuing shares above face value

• Issuing shares at market value

What does issuing shares at a premium mean?

• Issuing shares at their face value

• Issuing shares below face value

• Issuing shares above face value

• Issuing shares at market value

What does issuing shares at a discount mean?

• Issuing shares at their face value

• Issuing shares below face value

• Issuing shares above face value

• Issuing shares at market value

Where is the amount recorded for shares issued at par value?

• Assets side under current assets

• Liabilities side under the head of capital

• Liabilities side under reserves and surplus

• Assets side under fictitious assets

Where is the amount recorded for shares issued at a premium?

• Assets side under current assets

• Liabilities side under the head of capital

• Liabilities side under reserves and surplus

• Assets side under fictitious assets