Convertible Bonds Quiz Questions and Answers PDF Download - 33

The value of conversion option to bond holder is $550 and the rate of return on non-convertible bond is $270 then rate of return on convertible bond is

1. 0.0204
2. 2.04
3. 280
4. 820

The curve representing demand of the funds shifts to the left if economic growth in

1. global market is stagnant
2. global market is not stagnant
3. domestic market is stagnant
4. domestic market is not stagnant

The Eurobonds are issued by financial firms to

1. avoid taxes
2. avoid interest hike
3. avoid high floating rate
4. avoid portfolio issues

The type of market in which Eurodollar are traded is classified as

1. brokerage market
2. contraction market
3. expansion market
4. Eurodollar market

The legal document required by Securities Exchange Commission stating associated risks and detailed description of issues is classified as

1. prospectus
2. stated document
3. risk detailed document
4. exchange commission document