1) Determine and explain why mortgage-backed securities guaranteed by Federal government agencies often have yields above U.S. Treasury bond rates.

2)Determine what has contributed to the increased globalization of bond markets.

3)Identify the fundamental characteristics of money market debt instruments. Evaluate why these characteristics are important to money market participants who are investing in financing.

4)Explain why municipal bonds have lower yields than comparable corporate taxable bonds.

5)Analyze the relationships between bond price volatility and (a) bond maturity and (b) coupon rate.

6)Using loanable funds theory, determine how changes in consumer savings, in business investment, and in the money supply by the Federal Reserve system can influence the level of interest rates. Explain.

7)Identify the primary tools of monetary policy and analyze their relative usefulness.

8)Evaluate why secondary capital markets play an important role in our economy and summarize how secondary markets assist the primary market?