A ______ is a short-term loan secured by a money market instrument. a. commercial paper b. fed funds c. certificate of deposit d. repurchase agreement e. all of the above f. none of the above

The contract that defines the legal rights of bond issuers and bondholders is called the a. covenant b. debenture c. encumbrance d. indenture

ARMs reduce interest rate risk for I. the borrower II. the lender a. I only b. II only c. I and II d. Neither

Suppose you have a $1 million, 5% fixed rate mortgage with annual payments and a maturity of 30 years. What is your approximate annual payment? a. $60,051 b. $65,051 c. $70,051 d. $75,051 e. none of the above