1.Advantages of investing in money market funds include:

1. A: Liquidity
2. B: Personalizedcheckwritingservices
3. C: Federallyinsured
4. D: Alloftheaboveareadvantagestomoneymarketfunds investing
5. E: A and B only are advantages; C is not an advantage

2. The floor for a convertible bond is

A: Theparvalueoftheconvertiblebond

B: Theintrinsicvalueofthebonditself

C: Thevalueofastraightbond D: Alloftheabovearetrue

Please see attachment for more details.

FINC 340 Investments Week 1 Non-Graded Quiz DIRECTIONS: Here is the Week01 Non-Graded Quiz Answer Sheet that you should submit to your P1- Homework Assignment Folder. Please submit your Week01 Non-Graded Quiz in MS Word format with the following file name: LastNameFirstInitial_Week01NonGradedQuizAnswerSheet.docx. For example, if you name is John Smith, the file name of your Answer Sheet should be SmithJ_Week01NonGradedQuizAnswerSheet.docx. If you have any questions or comments, please do not hesitate to contact me. NAME: _____________________________________ Non-Graded Quiz Number 1 Question Advantages of investing in money market funds include: A: B: C: D: Liquidity Personalized check writing services Federally insured All of the above are advantages to money market funds investing E: A and B only are advantages; C is not an advantage 2 The \"floor\" for a convertible bond is A: B: C: D: E: 3 The par value of the convertible bond The intrinsic value of the bond itself The value of a straight bond All of the above are true B and C are true, but A is false Disadvantages of investing in preferred stock include: A: Dividends are fixed even if the financial condition of the firm improves B: No change in the share price if market interest rates change C: Uncertain cash flows from dividends D: Last to be paid in case of bankruptcy E: Usually a lower dividend yield than common equity 1 FINC 340 Investments Week 1 Non-Graded Quiz 4 A right gives the holder the option to purchase a specified number of a company's share at the A: B: C: D: E: 5 Types of municipal bonds include all of the following EXCEPT: A: B: C: D: E: 6 Exercise price Par value Strike price All of the above are correct A and C are correct, but B is incorrect General obligation bonds Treasury notes Private purpose bonds Revenue bonds All of the above are types of municipal bonds Users of strips as an investment alternative include all of the following EXCEPT: A: Investors who need a specified accumulation at the maturity date B: Conservative investors C: Children under the age of 14 D: Investors desiring steady cash inflows E: All of the above are potential strip investors 7 Investors in corporate zero-coupon bonds include all of the following EXCEPT: A: Tax-exempt retirement plans B: Conservative investors who want to lock-in their returns C: Investors who are saving for their children's college education D: Investors who do not need current cash flows E: All of the above are potential zero-coupon investors 2 FINC 340 Investments Week 1 Non-Graded Quiz 8 Information included in a promissory note includes all of the following EXCEPT: A: B: C: D: E: 9 U.S. Government securities include all of the following EXCEPT: A: B: C: D: E: 10 Treasury bills Treasury notes Federal Land Bank bonds National Bank, Inc. bonds Treasury bonds A debenture A: B: C: D: E: 11 Identification of the parties Coupon rate Method used to calculate the interest Current yield Maturity date Is unsecured debt Has priority over preferred stock if bankruptcy occurs Is backed by the general credit of the issuing firm All of the above are true A and B are true, but C is false Benefits of Guaranteed Investment Contracts (GICs) include all of the following EXCEPT: A: Higher rate of return than CD accounts B: Transferring the management of assets for a retirement account to the insurance company C: Federal insurance D: Transferring the investing of assets for a retirement account to the insurance company E: All of the above are benefits of GICs 12 Advantages of investing in common stock include: A: B: C: D: E: Assured regular cash flows through dividends Guaranteed higher returns than money market funds Low volatility of returns Participation in the growth of the firm Security of principal 3 FINC 340 Investments Week 1 Non-Graded Quiz 4