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 42 of 189
- A. 0.0613
- B. 0.0713
- C. 0.08125
- D. 0.0913
Explanation: The after-tax return is calculated as pre-tax return multiplied by one minus the tax rate: 12.5% × (1 − 0.35) = 8.125%, or 0.08125.
Correct answer: 0.08125- A. more inflated
- B. less inflated
- C. less risky
- D. more risky
Explanation: General obligation bonds are backed by the taxing power of the issuing government, whereas revenue bonds depend on income from a…
Correct answer: more risky- A. treasury notes and bonds
- B. contraction bonds
- C. expansion bonds
- D. dollar bonds
Explanation: Treasury notes and Treasury bonds are government securities used to finance government spending and national debt.
Correct answer: treasury notes and bonds- A. contraction bonds
- B. expansion bonds
- C. dollar bonds
- D. bonds
Explanation: Bonds are long-term debt instruments through which governments and corporations borrow money from investors.
Correct answer: bonds- A. US.T-Bonds
- B. UK-T-Bonds
- C. UK-B-bonds
- D. US-B-Bonds
Explanation: Some bonds gain investor appeal through partial backing by highly secure US Treasury bonds, which lowers perceived default risk.
Correct answer: US.T-Bonds- A. related to international market
- B. related to equity
- C. related to common stock
- D. related to national marketHire An Accountant
Explanation: A convertible Eurobond gives its holder the right to exchange the bond for shares, so it has an equity-related feature.
Correct answer: related to equity- A. lower paid interest rates
- B. higher paid interest rates
- C. registered interest rates
- D. unregistered interest rates
Explanation: Privately placed bonds are less liquid and are sold to a limited group of investors, so issuers commonly have to offer higher interest…
Correct answer: higher paid interest rates- A. 5000
- B. 10000
- C. 12000
- D. 22000Try Prep Courses
Explanation: Municipal bonds are commonly issued in minimum denominations of $5,000, making option a the standard figure.
Correct answer: 5000- A. index commitment underwriting
- B. insurance underwriting
- C. default risk underwriting
- D. firm commitment underwritingGet Corporate Bonds
Explanation: Under firm commitment underwriting, the investment bank buys the entire new issue at an agreed price and assumes the risk of reselling it.
Correct answer: firm commitment underwritingGet Corporate Bonds- A. contributed bonds
- B. non-callable bonds
- C. callable bonds
- D. discounted bonds
Explanation: A callable bond includes a call option that benefits the issuer, so its return is adjusted for the option's value to estimate the return…
Correct answer: non-callable bonds- A. treasury basis
- B. corporate basis
- C. premium basis
- D. discount basisCompare Personal Loans
Explanation: Treasury bills are normally sold at a discount to face value and redeemed at face value on maturity.
Correct answer: discount basisCompare Personal Loans832. The yield on subordinated bonds as compared to non-subordinated bonds is considered as _________?
- A. highly risky and higher yields
- B. highly risky and lower yields
- C. less risky and higher yields
- D. less risky and lower yields
Explanation: Subordinated bondholders are paid after senior or non-subordinated bondholders if the issuer defaults, so subordinated bonds carry greater…
Correct answer: highly risky and higher yields- A. treasury notes and bonds
- B. corporate bonds
- C. municipal bonds
- D. all of the above
Explanation: Bond markets are commonly divided into Treasury or government bonds, corporate bonds, and municipal bonds.
Correct answer: all of the above- A. STORI
- B. STRIPS
- C. RIAPS
- D. STORIAP
Explanation: STRIPS means Separate Trading of Registered Interest and Principal of Securities, where the interest and principal components of a bond…
Correct answer: STRIPS- A. face value of bond
- B. face value of stock
- C. book value of stock
- D. book value of bond
Explanation: The call price equals the bond's face value plus the call premium, so subtracting the premium from the call price gives the face value.
Correct answer: face value of bond- A. high yield bonds
- B. low yield bonds
- C. zero floating bonds
- D. high floating rate bonds
Explanation: Junk bonds are below investment grade, commonly rated below BBB or Baa, and are therefore called high-yield bonds because investors demand…
Correct answer: high yield bonds- A. subordinated debentures
- B. ordinate debentures
- C. expansion debentures
- D. premium debentures
Explanation: Subordinated debentures rank below senior debentures and mortgage bonds in the repayment order if the issuer defaults.
Correct answer: subordinated debentures- A. local placement
- B. public offering
- C. government placement
- D. index placement
Explanation: Municipal bonds commonly enter the initial market through a public offering, where they are sold to investors before later trading in the…
Correct answer: public offering839. The coupon payment accrued between last payment and settlement date is classified as __________?
- A. paid interest
- B. unpaid interest
- C. zero interest
- D. accrued interest
Explanation: Coupon interest earned from the last payment date up to the settlement date is called accrued interest.
Correct answer: accrued interest- A. bond covenants
- B. private covenants
- C. federal covenants
- D. expansion covenants
Explanation: Bond covenants are the contractual rules that specify the rights, duties, restrictions, and conditions applying to both bond issuers and…
Correct answer: bond covenants