1) A Money Market security is one which: a) b) Matures beyond 12 months Is collateralized by US Government obligations Matures in less than one year Has a floating interest rate c) d) 2) The value of a derivative security is based on the value of the underlying primary asset TRUE FALSE Money Market Securities which are sold on a discounted basis include: a) b) c) d) Treasury Notes Treasury Bills Commercial Paper b) and c) The Yield to Maturity of a corporate bond issue is equal to b) The "Coupon" Rate The present value of all the interest payments The current yield plus the capital gain or loss yield The yield of a comparable US government security plus inflation d) 5) You are considering purchasing a corporate bond that has a 10 year maturity, a $1,000 par value, and a 6.5% coupon rate. If an appropriate YTM for bonds of this type is 7.25%, and the price today is $947.30, what would your next payment be if you owned 10 bonds? $650.00 $65.00 $32.50 $325.00 6) For the bond described in problem 5 above, what would be the current yield? 7.25% 6.53% 6.86% 7.10%