Chap 4

Câu 1. Which kind of bonds allows for exchange to shares of a corporation other than the issuer?

• A. Convertible bond

• B. Exchangeable bond

• C. Callable bond

• D. Government bond

Câu 2.... is a kind of bond that its principal amount and the interest payments are indexed to the price index such as inflation

• A. Junk bond

• B. Linker

• C. Perpetuity

• D. Municipal bond

Câu 3. Which sentence is not true for the unsecured bonds?

• A. Unsecured bonds are issued without any pledged assets

• B. Unsecured bonds are secured by the prestige of the issuing organizations

• C. Unsecured bonds are secured by the common assets of the issuers in the event of bankruptcy

• D. Unsecured bonds will receive nothing from issuers in the case of bankruptcy

Câu 4. Which type of bond is issued by local authorities?

• A. Government bond

• B. Municipal bond

• C. Corporate bond

• D. Short-term bond

Câu 5. Which type of bonds has a coupon that remains constant throughout the life of the bond?

• A. Coupon bond

• B. Floating rate note

• C. Zero-coupon bond

• D. Deep discount bond

Câu 6. Debt instruments represent a contractual claim against an issuer to make specific payments, including ..., over a defined period

• A. Periodic interest payments

• B. Principal repayments

• C. Both of the above

• D. None of the above

Câu 7. Which type of instruments is not defined as debt instruments?

• A. Bond

• B. Unsecured notes

• C. Term loans

• D. Stock

Câu 8. Which ofthe following sentences is true for Treasury Inflation protected securities (TIPS)?

• A. Coupon rate is set at a fixed rate, and the principal is fixed

• B. Coupon rate is adjusted for inflation, and the principal is fixed

• C. Coupon rate is set at a fixed rate, and the principal is adjusted semiannually for inflation

• D. Coupon rate is adjusted for inflation, and the principal is adjusted for inflation

Câu 9. Treasury bills are issued on:

• A. Treasury basis

• B. Corporate basis

• C. Premium basis

• D. Discount basis

Câu 10. Junk bonds which are rated lower than triple B are also classified as:

• A. High yield bonds

• B. Low yield bond

• C. Zero floating bonds

• D. High floating rate bonds