20. Sond halders may expect two types of cash flows from issuers, Principal and c. Coupon d. Capital gain a. Par value b. Capital gain 21. Fed funds are shai b. False 2. True 22. Cammercial paper, Treasury bilis, and bonker's acceptance rates are oll quoted as discount: yields. b. False a. True high liquidity. a. True b. False 24. An improvement in economic conditions would likely shift the supply curve to the right and shift the demand curve for funds to the right. b. False a. True 25. Coupon rate of Treasury inflation indexed bonds are adjusted periodically to match inflation Part 2: Fach question carries two (2) points b. False 26. Suppose that $10 million face value commercial paper with a 270 -day maturity is selling for $9.55 million. What is the BEY on the paper? a. 4.71 c. 6.47 e. 6.28 27. If a $10,000 par T-bill has a 3.75 percent f. None of the above price of the T-bill to the nearast dollar? a. 9.9065 c. 9,6275 e. 10,1225 a. (1) c. (3) single payment yield (3). e. The reasoning of this statement 29. To the nearest basis point, what is the expected int coupon bond purchased six years from today? a. 9.96% c. 10.41% e. 9.16% b. 10.56% d. 10.05% f. None of the above 30. 4-year interest rate is expected to be 25 bps higher next year from the current level, what rat below shall maintain equilibrium state? a. 115:8.75% c. i i05: 8.6% e. a and d are both correct b. i04:8.53% d. i01: 8.7% f. None of the above Xem thm