Question
13_ The over-the-counter ( OTC ) market is a market for smaller and unlisted securities, True False 14_ Assume that Muscat Inc. has an issue
13_ The over-the-counter (OTC) market is a market for smaller and unlisted securities,
True
False
14_ Assume that Muscat Inc. has an issue of 18 - year OMR 1,000 par value bonds that pay 7% interest , annually . Further, assume that today's required rate of return on these bonds is 5%. How much would these bonds sell for today ? Round off to the nearest OMR 1 .
a . OMR 1,032.56 .
B.None of the answers are correct
C. OMR 1,233.79
d . OMR 1,134.88
e . OMR 1,201.32
15_ A money market security , where , a bank accepts responsibility for future payments is referred to as
a . Repurchase agreements or Repos
b . None of the answers are correct
c . Commercial paper
d. Treasury bills
e . Banker's acceptances
16_ An upward - sloping yield curve that indicates cheaper short - term borrowing costs than long - term borrowing costs is called as
a . inverted yield curve
b . flat yield curve
c . None of the answers are correct
d . lognormal yield curve
e , normal yield curve
17-TIPS offer a fixed coupon rate with respect to the consumer price index
True
False
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