M C Q s D r i v e

Management Sciences 5307 MCQs [All-Courses]

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Management Sciences focuses on the planning, organizing, leading, and controlling of resources to achieve organizational goals.This subject is highly important for competitive exams, academic study, and professional careers in the business and public sectors.

In zero coupon bonds, the increase in duration with respect to maturity must be at ___________?
A decreasing rate
B increasing rate
C alarming rate
D inelastic rate
Correct Answer: decreasing rate
The type of bond for which the bonds present value is greater than bonds face value is classified as ____________?
A coupon bond
B interest bonds
C discount bond
D premium bond
Correct Answer: premium bond
The interest rate that investors receive on financial security to calculate fair value of security is classified as ___________?
A forward rate of return
B unturned rate of return
C required rate of return
D termed rate of return
Correct Answer: required rate of return
The bonds that does not pay any interest rate are considered as ___________?
A interest free bond
B zero coupon bond
C price less coupon bond
D useless price bonds
Correct Answer: zero coupon bond
For an investment, the weighted average time to maturity is considered as ___________?
A premium time
B standard time
C mean time
D duration
Correct Answer: duration
For given change in interest rates, the percentage change in the present value of bond is classified as __________?
A price sensitivity
B yield sensitivity
C maturity sensitivity
D premium sensitivity
Correct Answer: price sensitivity
The type of bonds that pay coupon interest are classified as ____________?
A forward bond
B payment bonds
C coupon bond
D interest bonds
Correct Answer: coupon bond
The duration which is divided by the interest rate plus one is classified as ____________?
A decreased duration
B increase duration
C modified duration
D at par duration
Correct Answer: modified duration
The investors of the coupon bond will receive cash flow very soon if the ____________?
A maturity is lower
B maturity is higher
C interest payment is higher
D interest payment is lower
Correct Answer: interest payment is higher
The more the coupon payment or promised interest payment ____________?
A the higher its duration
B the lower its duration
C zero duration
D One year duration
Correct Answer: the lower its duration