361. An increasing in interest rate leads to decline in value of__________?
A. Junk bonds
B. Outstanding bonds
C. Standing bonds
D. Premium bonds

362. Coupon rate of bond is also called____________?
A. Nominal rate
B. Premium rate
C. Quoted rate
D. Both a and c

363. Bonds issued by small companies tend to have_____________?
A. High liquidity premium
B. High inflation premium
C. High default premium
D. High yield premium

364. Type of bonds that pays no coupon payment but provides little appreciation are classified as______________?
A. Depreciated bond
B. Interest bond
C. Zero coupon bond
D. Appreciation bond

365. Reinvestment risk of bonds is higher on__________?
A. Short maturity bonds
B. High maturity bonds
C. High premium bonds
D. High inflated bonds

366. In large expansion programs, increased riskiness and flotation cost associated with project can cause_______________?
A. Rise in marginal cost of capital
B. Fall in marginal cost of capital
C. Rise in transaction cost of capital
D. Rise in transaction cost of capital

367. Cash outflows are costs of project and are represented by___________?
A. Negative numbers
B. Positive numbers
C. Hurdle number
D. Relative number

368. Sum of discounted cash flows is best defined as____________?
A. Technical equity
B. Defined future value
C. Project net present value
D. Equity net present value

369. If net present value is positive, then profitability index will be__________?
A. Greater than two
B. Equal to
C. Less than one
D. Greater than one

370. Cash flows occurring with more than one change in sign of cash flow are classified as________?
A. Non-normal cash flow
B. Normal cash flow
C. Normal costs
D. Non-normal costs

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