Please indicate de false statement:

1.   ?    the major part of international bond market belongs to developped countries
2.   ?    the major part of international bond market belongs to private companies
3.   ?    the major part of international bond market belongs to developping countries
4.   ?    the major part of international bond market belongs to private banks

If we take into consideration the bond market structure by type of bonds, the most important bonds are:

1.   ?    Municipal Bonds
2.   ?    Treasury Bonds
3.   ?    Corporate Bonds
4.   ?    Convertible Bonds

If we take into consideration the bond market structure by type of bonds, the most important bonds are:

1.   ?    Fixed Rate Notes
2.   ?    Floating Rate Notes
3.   ?    Bonds with warrant
4.   ?    Convertible Bonds

Please indicate the false statement:

1.   ?    foreign bonds have a less importance than eurobonds on international market
2.   ?    foreign bonds have a higher risk than eurobonds on international market
3.   ?    foreign bonds have a higher maturity than eurobonds on international market
4.   ?    eurobonds have a lower cost than eurobonds on international market

When a company isssue bonds on international markets the most important role in fund subscription is played by:

1.   ?    underwritting group
2.   ?    leader bank
3.   ?    coordinanting group
4.   ?    selling group

Please indicate the false statement:

1.   ?    bond is a security that is issued in connection with a specific borrowing arrangement
2.   ?    eurobonds are issued in local currencies (especially euro)
3.   ?    bond indenture represents the contract between the issuer and the borrower
4.   ?    treasury bonds have the lowest risk

This is not a main element of a bond indenture:

1.   ?    Face value
2.   ?    Coupon rate
3.   ?    Issuing price
4.   ?    Bond premium
5.   ?    Taxation

Puttable Bonds:

1.   ?    allows the issuer to repurchase the bond at a specific call price before the maturity
2.   ?    Give to the bondholders an option to exchange each bond for a specified number of shares of common stock of the firm
3.   ?    Make interest payments that are tied to some measure of current market rate
4.   ?    Allows the bond holder to extend or to sell bond at a specific date (call date)

Convertible Bonds:

1.   ?    allows the issuer to repurchase the bond at a specific call price before the maturity
2.   ?    Give to the bondholders an option to exchange each bond for a specified number of shares of common stock of the firm
3.   ?    Make interest payments that are tied to some measure of current market rate
4.   ?    Allows the bond holder to extend or to sell bond at a specific date (call date)

Asset - Backed Bonds:

1.   ?    suppose an issuing of bonds with a coupon rate connected to the financial performance of several firms from the same group
2.   ?    suppose an issuing of bonds with a final payment that depended on whether there a catastrophe will be produced
3.   ?    suppose a falling down of the coupon rate when the general interest rates rises
4.   ?    make payments that are tied to a general price index or a particular commodity price

Reverse Floater Bonds:

1.   ?    suppose an issuing of bonds with a coupon rate connected to the financial performance of several firms from the same group
2.   ?    suppose an issuing of bonds with a final payment that depended on whether there a catastrophe will be produced
3.   ?    suppose a falling down of the coupon rate when the general interest rates rises
4.   ?    make payments that are tied to a general price index or a particular commodity price

It is not use as indicator to determine the bond safety:

1.   ?    Times – interest – earned ratio
2.   ?    Fixed Charge Coverage Ratio
3.   ?    Quick Ratios
4.   ?    Cash Flow to Liabilites Ratio

If the face falue for a bond is 120 Euro, the selling price is 125 Euro and the coupon rate is 10% than the current yield is:

1.   ?    12%
2.   ?    10%
3.   ?    9.6%
4.   ?    14%
5.   ?    none

Bond value formula is based on:

1.   ?    coupon rate and buying price of a bond
2.   ?    coupon rate and par value of a bond
3.   ?    coupon rate and bond premium
4.   ?    coupon rate, selling price and face value

If the duration af a bond is 5 years, the actual interest rate is 10%, actual price is 12 USD and estimated interest rate is 11% than the bond price will be:

1.   ?    11.45 USD
2.   ?    12.30 USD
3.   ?    14.50 USD
4.   ?    10.80 USD
5.   ?    none

If the actual interest rate is 12%, actual price is 12 USD, the estimated price is 13 USD and estimated interest rate is 10% than the bond duration is:

1.   ?    4.66 years
2.   ?    3.44 year
3.   ?    5.44 years
4.   ?    3.77 years
5.   ?    none

If the par value of a indexed to inflation bond is 15 USD, number of bonds issued 100, coupon rate is 5%, inflation for the first year is 2% than nominal return is:

1.   ?    7.10%
2.   ?    5.60%
3.   ?    14.3%
4.   ?    12.1%
5.   ?    none

If the par value of a indexed to inflation bond is 15 USD, number of bonds issued 100, coupon rate is 5%, inflation for the first year is 2% than the real return is:

1.   ?    7.10%
2.   ?    5.60%
3.   ?    14.3%
4.   ?    3%
5.   ?    none

The conversion rate in case of convertible bonds is determined using the following formula:

1.   ?    The Conversion Rate = Number of Bonds + Coupon Rate / Number of Stock
2.   ?    The Conversion Rate = Number of Bonds / Number of Stock
3.   ?    The Conversion Rate = Number of Bonds * Coupon Rate + 1/ Number of Stock
4.   ?    The Conversion Rate = Current Yield / Number of Stock

The conversion premium in case of convertible bonds is:

1.   ?    The Conversion Premium = Bond Premium x Number of Bonds – Current Stock Price x Number of Stock
2.   ?    The Conversion Premium = Bond Buying Price x Number of Bonds – Current Stock Price x Number of Stock
3.   ?    The Conversion Premium = Bond Selling Price x Number of Bonds – Current Stock Price x Number of Stock
4.   ?    The Conversion Premium = Bond Par Value x Number of Bonds – Current Stock Price x Number of Stock

If a company issued on international market a number of 10.000 convertible bonds at a face value of 10 Euro and at the conversion moment the stock price is 5 Euro and the conversion rate 0.6 than the conversion premium per bond is:

1.   ?    2.67 USD
2.   ?    1.67 USD
3.   ?    1.45 USD
4.   ?    1.25 USD
5.   ?    none

If a company issued on international market a number of 10.000 convertible bonds at a face value of 10 Euro and at the conversion moment the stock price is 5 Euro and the conversion premium per bond is 2.31 Euro than the conversion rate is:

1.   ?    0.5
2.   ?    0.8
3.   ?    0.75
4.   ?    0.3
5.   ?    none

In case of Call Provisions on Corporate Bonds:

1.   ?    it is allowed to extend or to sell bond at a specific date
2.   ?    when the coupon rate is too low the holder will reduce the holding period
3.   ?    the call price is above par value according with maturity
4.   ?    the holder is interest to extend the bond life when the bond current yield exceeds current market yields

A Eurobond is issued

1.   ?    only in Europe
2.   ?    in a local currency
3.   ?    in a foreign currency
4.   ?    only at a fixed interest rate

The most important issuing institutions on international bond market are:

1.   ?    municipalities
2.   ?    government
3.   ?    banks
4.   ?    private companies
5.   ?    international institutions