Explanation : Bonds issued by local government authorities are called non-sovereign
bonds. Bonds issued by agencies that are owned or sponsored by
governments are called quasi-government bonds. Additionally, bonds
issued by supranational organizations are called supranational bonds.
Bonds issued by national governments are called sovereign bonds. Bonds
issued by companies are called corporate bonds.
Explanation : A bond quoted at 102 reflects a premium of 2% over its par value. This
results in current market price of $10,200. Since the market price is
greater than the par value, the bond is trading at a premium.
Explanation : Coupon rate of 5% paid quarterly means 5/4 = 1.25% of par is paid every
quarter. On a face value of $1,000, this results in a periodic interest
payment of $12.5. This amount is paid every quarter i.e. four times a