homework 11. 12 13 14 15

FINC 3350 Financial Institutions and Markets Fall 2019 11. Money market securities exhibit which of the following? I Large denomination II. Maturity is one year or less II. No interest rate risk IV. Contractually determined cash flows A) I, II, and II B) I, III, and IV C) I, I1, III, and IV D) I, II and IV 12. In the T-bill auction process, the competitive bidder is guaranteed a a noncompetitive bidder is guaranteed a A) minimum price; maximum price. B) maximum price; minimum price. C) maximum price; given quantity D) minimum price; maximum quantity. and 13. The most liquid of the money market securities are A) commercial paper. B) banker's acceptances. C) T-bills. D) Fed Funds and repurchase agreements. 14. A Treasury security in which periodic coupon interest payments can be separated from each other and from the principal payment is called a A) STRIP. B) T-note. C) T-bond. E) Revenue bond 15. Which of the following is/are true about callable bonds? 1. Must always be called at par II. Will normally be called after interest rates drop III. Can be called by either the bondholder or the bond issuer IV. Have higher required returns than non-callable bonds A) I and II only B) Il and IV only C) II and III only D) I, II, and III only FINC 3350 Financial Institutions and Markets Fall 2019 11. Money market securities exhibit which of the following? I Large denomination II. Maturity is one year or less II. No interest rate risk IV. Contractually determined cash flows A) I, II, and II B) I, III, and IV C) I, I1, III, and IV D) I, II and IV 12. In the T-bill auction process, the competitive bidder is guaranteed a a noncompetitive bidder is guaranteed a A) minimum price; maximum price. B) maximum price; minimum price. C) maximum price; given quantity D) minimum price; maximum quantity. and 13. The most liquid of the money market securities are A) commercial paper. B) banker's acceptances. C) T-bills. D) Fed Funds and repurchase agreements. 14. A Treasury security in which periodic coupon interest payments can be separated from each other and from the principal payment is called a A) STRIP. B) T-note. C) T-bond. E) Revenue bond 15. Which of the following is/are true about callable bonds? 1. Must always be called at par II. Will normally be called after interest rates drop III. Can be called by either the bondholder or the bond issuer IV. Have higher required returns than non-callable bonds A) I and II only B) Il and IV only C) II and III only D) I, II, and III only