MCQs were easy but from every chapter. Read handouts line by line in order to achieve good marks. 1-When a bond’s coupon rate is (equal to) the market’s required return, the bond’s market value will be (equal to) its par value. 2-A call provision allows the company to repurchase, or “call” part or all of the bond issue at stated prices over a specific period. 3-Real rates are interest rates or rates of returns that have been adjusted for inflation 4-When long term rates are higher than short term rates we say term structure is upward sloping and vice versa. 5-The total number of votes that each shareholder may cast is determined first by multiplying the number of shares with the number of directors to be elected. 6-The difference between the bid and ask price is called the spread. 7-One