Question
1_Treasury inflation-protected securities ( TIPS ) offer a fixed coupon rate with respect to the consumer price index. Select one : True False 2_A depository
1_Treasury inflation-protected securities (TIPS) offer a fixed coupon rate with respect to the consumer price index.
Select one:
True
False
2_A depository institution, in the form of savings and loans, credit unions is - ________
Select one:
a. Pension funds
b. None of the answers are correct
c. Investment banks
d. Insurance companies
e. Thrifts
3_ Primary and secondary markets are markets for short-term and long-term securities, respectively.
Select one:
True
False
4_
The forward FX transaction involves the immediate exchange of currencies at the current exchange rate
Select one:
True
False
5-Muscat Co. has an outstanding issue of bond with a par value of OMR 1,000, paying a 12 % coupon rate semi-annually. The bond was issued 25 years ago and has 5 years to maturity. What is the value of the bond assuming a 14 % rate of interest?
Select one:
a. OMR 931.372
b. None of the answers are correct
c. OMR 1,000
d. OMR 1582.68
e. OMR 929.7
6_Long-term debt instruments used by both government and business are known as preferred stocks.
Select one:
True
False
7_ Bonds which sell at less than face value is priced at a ________, while bonds which sell at greater than face value sell at a
Select one:
a. coupon; premium
b. discount; par
c. None of the answers are correct
d. par; premium
e. discount; premium
8_ Muscat Co. has an issue of OMR 1,000 par value bonds with a 14 % annual coupon interest rate. The issue has ten years remaining to the maturity date. Bonds of similar risk are currently selling to yield a 12 % rate of return. The current value of each Muscat Co. bond is
Select one:
a. OMR 1,052.24
b. OMR 1,113.00
c. OMR 1,000
d. None of the answers are correct
e. OMR 791.00
9_ The term structure of interest rates is a graphical presentation of the relationship between the maturity and rate of return.
Select one:
True
False
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