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Home Interview Accounting and Finance Comments

  • Question
  • Which of the following bonds has the greatest interest rate price risk?


  • Options
  • A. a 10 year, 5% coupon bond
  • B. a 5 year, 5% coupon bond
  • C. a 5 year, 10% coupon bond
  • D. a 10 year, 10% coupon bond

  • Correct Answer
  • a 10 year, 5% coupon bond 

    Explanation

    A 10 year, 5% coupon bond has the greatest interest rate price risk.

  • Tags: AIEEE, Bank Exams, CAT, Analyst, Bank Clerk, Bank PO

    Accounting and Finance problems


    Search Results


    • 1. Select the correct statement regarding fixed costs.

    • Options
    • A. Because they do not change, fixed costs should be ignored in decision making.
    • B. The fixed cost per unit decreases when volume increases.
    • C. The fixed cost per unit does not change when volume decreases.
    • D. The fixed cost per unit increases when volume increases.
    • Discuss
    • 2. The chart of accounts is designed to

    • Options
    • A. alphabetized the accounts to make reading easier for its financial statement users
    • B. summarize the transactions and determine their ending balances
    • C. meet the information needs of a company and other financial statement users
    • D. analyse the accounts and organize them in order of dollar amount to simplify the accounting information for users
    • Discuss
    • 3. Accrual accounting is used because

    • Options
    • A. it provides a better indication of ability to generate cash flows than the cash basis.
    • B. it recognizes revenues when cash is received and expenses when cash is paid.
    • C. cash flows are considered less important.
    • D. All of the above
    • Discuss
    • 4. A Credit may signify a

    • Options
    • A. Increase in the liability account
    • B. Decrease in an asset account
    • C. Increase in the capital stock account
    • D. All of the above
    • Discuss
    • 5. A distinguishing feature of managerial accounting is

    • Options
    • A. general-purpose reports
    • B. very detailed reports
    • C. quarterly and annual reports
    • D. external users
    • Discuss
    • 6. Which of the following is not a direct tax?

    • Options
    • A. Sales tax
    • B. Corporation tax
    • C. Wealth tax
    • D. Estate tax
    • Discuss
    • 7. Generally accepted accounting principles are
    • Discuss
    • 8. Financial statements are prepared in the following order.

    • Options
    • A. Income statement - Balance sheet - Statement of retained earnings
    • B. Income statement - Statement of retained earnings - Balance sheet
    • C. Balance sheet - Statement of retained earnings - Income statement
    • D. Statement of retained earnings - Balance sheet - Income statement
    • Discuss
    • 9. Managerial Accounting is also called

    • Options
    • A. Control accounting
    • B. Management accounting
    • C. Cost accounting
    • D. Both B & C
    • Discuss
    • 10. What determines the value of an item?

    • Options
    • A. the capital required to build the factory
    • B. the unlimited wants of the consumers
    • C. the resources consumed in production
    • D. the amount of goods that are produced
    • Discuss


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