Question
1.Suppose a seller cites $All-in-cost$ for a conventional trade at 8% against half year LIBOR level. In the event that the notional chief measure of
1.Suppose a seller cites $All-in-cost$ for a conventional trade at 8% against half year
LIBOR level. In the event that the notional chief measure of trade is $ 5,00,000.
I. Figure semi-yearly fixed installment.
ii. Track down the primary skimming rate installment for (I) above if the half year time frame from the
viable date of trade to the settlement date includes 181 days and that
the comparing LIBOR was 6% on the powerful date of trade.
In (ii) above, if the settlement is on $Net$ premise, how much the fixed rate payer
would pay to the drifting rate payer?
Conventional trade depends on 30/360 days premise.
2. Which of the accompanying assertions is bogus?
a. A bond guarantor should pay intermittent interest.
b. Bond costs stay fixed over the long run.
c. Securities convey no corporate proprietorship advantages.
d. A bond is a monetary agreement.
3. Which of the accompanying assertions is valid?
a. Low swelling is required to negatively affect bond costs.
b. As a rule, bonds are less secure than basic stocks.
c. Bonds are generally less fluid than stocks.
d. A bondholder reimburses head when the bond develops.
4. Most bonds:
a. are currency market protections.
b. give bondholders a voice in the issues of the organization.
c. are interest-bearing commitments of governments or companies.
d. are drifting rate protections.
5. Which of coming up next isn't a benefit of putting resources into bonds?
a. Bonds have limitless benefit potential.
b. Bond speculations are generally protected from enormous misfortunes.
c. Bonds are acceptable wellsprings of current pay.
d. Bondholders get their installments before investors can be redressed.
6. Which of coming up next is a capital market security?
a. Depository bills. B. Government reserves.
c. Government organization bonds. D. Eurodollars.
7. Which of coming up next is a currency market security?
a. Repurchase arrangements. b. City bonds.
c. Home loans. d. U.S. Depository notes.
8. Companies acquire for the present moment by giving:
a. corporate bills. b. corporate securities.
c. business paper. b. financiers' acknowledgments.
9. What is utilized to cite the rates on Eurodollar stores?
a. Markdown rate. b. Government supports rate.
c. Repo rate. d. LIBOR.
10. Which of the accompanying turns out revenue that is completely absolved from tax assessment for the person
financial backer?
a. City bonds. b. Favored stocks.
c. Depository notes. d. Depository bills.
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