Question : Which of the following is not a type of bond?
Option 1: Zero coupon bond
Option 2: Junk bond
Option 3: Corporate bond
Option 4: Equity bond
Correct Answer: Equity bond
Solution : The correct answer is (d). Equity bond
Bonds are fixed-income securities that represent a loan made by an investor to a borrower. They typically have fixed interest payments (coupon payments) and a maturity date at which the principal amount is repaid. The issuer of the bond can be a government, corporation, or other entity.
Equity bond is not a recognized term or type of bond. "Equity" typically refers to ownership or shares in a company. Bonds represent debt, while equity represents ownership. Therefore, an "equity bond" would not be a valid classification within the bond market.
Option 1: Corporate bond
Option 2: Government bond
Option 3: Equity bond
Option 4: None of the above
Question : Which of the following is not a characteristic of equity shares?
Option 1: Voting rights
Option 2: Fixed dividend
Option 3: Residual claim on assets
Option 4: Higher risk
Question : Which of the following is a fixed-income security?
Option 1: Equity shares
Option 2: Debentures
Option 3: GDRs
Option 4: Preference shares
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