All Free Management Sciences MCQs with Answers
Every Management Sciences question in the bank, across all chapters, each with the correct answer and a written explanation. Free and unlimited, with no account needed.
3,770 questions · page 39 of 189
- A. discount convertible bonds
- B. convertible bonds
- C. non-convertible bonds
- D. premium convertible bonds
Explanation: A convertible bond gives its holder the right to exchange the bond for shares of the issuing company.
Correct answer: convertible bonds- A. higher price
- B. lower price
- C. indexed price
- D. commercial price
Explanation: Under firm commitment underwriting, the underwriter purchases the entire issue and resells it to investors at a higher price to earn the…
Correct answer: higher price- A. excess of information
- B. lack of information
- C. frequent information
- D. infrequent information
Explanation: Municipal bonds often trade thinly because investors have limited and uneven information about the financial condition of issuing…
Correct answer: lack of information764. The foreign bonds issued in United States financial institutions are classified as ____________?
- A. bull dog bonds
- B. bull cat bonds
- C. Yankee bonds
- D. samurai bonds
Explanation: Yankee bonds are bonds issued in the United States by foreign borrowers, usually denominated in U.S. dollars.
Correct answer: Yankee bonds- A. monthly
- B. quarterly
- C. annually
- D. semiannually
Explanation: Eurobonds traditionally pay interest annually, although the exact payment frequency can vary by issue.
Correct answer: annually- A. untimed indentures
- B. untimed debentures
- C. indentures
- D. debentures
Explanation: Debentures are generally unsecured bonds backed by the issuer's creditworthiness rather than specific collateral.
Correct answer: debentures- A. must not changes
- B. must changes
- C. must be debited
- D. must be credited
Explanation: Yield spreads respond to bond characteristics that increase or reduce risk, such as unfavorable security features or weaker credit…
Correct answer: must changes768. The foreign bonds issued in United Kingdom financial institutions are classified as ____________?
- A. Yankee bonds
- B. samurai bonds
- C. bull dog bonds
- D. Euro bonds
Explanation: Bulldog bonds are foreign bonds issued in the United Kingdom and denominated in pounds sterling.
Correct answer: bull dog bonds769. The type of bonds in which whole issues get mature on a single date is considered as ___________?
- A. term bonds
- B. under bonds
- C. collateral bonds
- D. trustworthy bonds
Explanation: Term bonds have a single maturity date for the entire issue, unlike serial bonds, which mature in portions on different dates.
Correct answer: term bonds- A. less discounted
- B. more risky
- C. less risky
- D. more discountedAccounting & Auditing
Explanation: Stock warrants are commonly attached to bonds by firms perceived as more risky, because the warrant makes the issue more attractive to…
Correct answer: more risky- A. current market price
- B. past market price
- C. future market value
- D. current stock value
Explanation: Conversion value equals the stock’s market price multiplied by the conversion rate, so dividing conversion value by the conversion rate…
Correct answer: current market price- A. best efforts offering
- B. least good index
- C. least good premium
- D. least good discount price
Explanation: Under a best-efforts offering, the investment bank acts as the issuer’s distributor without guaranteeing that the issue will be sold or…
Correct answer: best efforts offering- A. maturity date of euro bond
- B. cost of euro bond
- C. issuance process of bonds
- D. process of printing moneyBonds
Explanation: The currency selected for denomination and changes in interest-rate volatility influence investors’ required returns and therefore the…
Correct answer: cost of euro bond- A. buyers of bond
- B. issuers of bonds
- C. close market prices
- D. open market prices
Explanation: The issuer generally chooses the denomination currency of a Eurobond, often considering borrowing costs, expected cash flows, and investor…
Correct answer: issuers of bonds- A. principle and interest
- B. debt and cash
- C. capital and profit
- D. cash and interest
Explanation: A financial guarantee protects the lender by ensuring payment of both the principal amount borrowed and the interest due.
Correct answer: principle and interest- A. 0.0744
- B. 0.0844
- C. 0.0944
- D. 0.1044
Explanation: The after-tax return is the before-tax return multiplied by one minus the tax rate: 14.5% × (1 − 0.28) = 10.44%, or 0.1044.
Correct answer: 0.1044- A. 0.0725
- B. 0.08246
- C. 0.1025
- D. 0.0925
Explanation: Applying the tax adjustment gives 15.5% × (1 − 0.468) = 8.246%, expressed as 0.08246.
Correct answer: 0.08246- A. more risky
- B. less risky
- C. term risk
- D. serial risk
Explanation: Mortgage bonds are secured by specific assets, giving bondholders a claim on collateral if the issuer defaults.
Correct answer: less risky- A. London and Luxembourg
- B. Australian markets
- C. Swiss banks counters
- D. Asian banks countersAccounting & Auditing
Explanation: London and Luxembourg are major international centres for Eurobond issuance and trading.
Correct answer: London and Luxembourg- A. outside bonds
- B. foreign bonds
- C. issuing country bonds
- D. denominated bonds
Explanation: A foreign bond is issued in a country by an issuer from another country, usually in the currency of the market where it is sold.
Correct answer: foreign bonds