Fixed Income Valuation

Fixed income securities means the securities that provides

• Regular Constant Income

• Fluctuating Income

• No Income

• Income after some interval

Following are the fixed income securities except

• Debentures

• Preference Shares

• Equity Shares

• Bonds

A portfolio manager is considering the purchase of a bond with a 5.5% coupon

rate that pays interest annually and matures in three years. If the required rate

of return on the bond is 5%, the price of the bond having a face value of Rs.100 is:

• 98.65.

• 101.36.

• 106.43.

• 100

Interest / coupon is alwas calculated on:

Premium is ________in the face value.

• deducted

• added

• multipled

• divided

Required rate of return is also called as

• Yield

• Yield to maturity

• Discount rate

• all of the above

When the price of bond is calculated below its par value, it is classified as...

What is bond?

• A friendship agreement

• A type of debt that company issues

• Chemical reaction

• Related to biology

The rate of interest on the bond is called as___

• Bond Rate

• Discount Rate

• Coupon Rate

• Premium Rate

Premium, Discount and Coupon is calculated on