Please answer attached questions 1-20 and submit ASAP.

1. (TCO 5) The source of data for a yield curve might be (Points : 4) bond yield by issuers over time. historical Treasury security yields. realized Treasury security yields by time. outstanding Treasury security yields by maturity. Question 2.2. (TCO 5) An upward sloping yield curve indicates that security investors expect future interest rates to _____ and security prices to _____. (Points : 4) fall; fall fall; rise rise; fall rise; rise Question 3.3. (TCO 5) According to the expectations theory, what is the one-year forward rate three years from now if three- and four-year spot rates are 5.50% and 5.80%, respectively? (Points : 4) The rate cannot be calculated from the information above 6.2% 6.7% 5.6% Question 4.4. (TCO 5) Default risk premiums vary _____ with the _____ of the security. (Points : 4) directly; default risk inversely; default risk inversely; maturity directly; marketability Question 5.5. (TCO 5) _____ provide bond ratings. (Points : 4) The government Investors Corporations Rating agencies Question 6.6. (TCO 6) Which of the following is a characteristic of money market instruments? (Points : 4) Short-term to maturity Low default risk High marketability All of the above Question 7.7. (TCO 6) Which statement about Treasury bills is true? (Points : 4) They have maturities less than one year. Most are sold by "book-entry" method. They are sold at a discount. All of the above Question 8.8. (TCO 6) _____ is a money market security represented by the largest dollar amount outstanding. (Points : 4) Commercial paper A municipal security Negotiable CDs Treasury bills Question 9.9. (TCO 6) Which of the following securities are examples of a money market security? (Points : 4) Treasury bills Certificates of deposit Banker's acceptance All of the above Question 10.10. (TCO 6) If a firm is to buy securities with the agreement to sell them back later at a higher price, this is a _____. (Points : 4) reversion agreement reverse repurchase agreement reverse purchase agreement repurchase agreement Question 11.11. (TCO 7) The secondary markets for capital market securities have facilitated economic growth in the U.S. because (Points : 4) they help provide marketability for capital market claims. they have decreased people's willingness to buy capital market claims. they make people more willing to invest because they can more easily diversify their risk. they help provide marketability for capital market claims and they make people more willing to invest because they can more easily diversify their risk. Question 12.12. (TCO 7) Corporations will typically use capital market financing for (Points : 4) new plant and equipment. seasonal inventory needs. a quarterly dividend payment. the sale of common stock. Question 13.13. (TCO 7) United States Treasury STRIP investments help to eliminate (Points : 4) default risk. price risk. reinvestment risk. foreign exchange risk. Question 14.14. (TCO 7) _____ is not commonly associated with municipal bonds. (Points : 4) Inflation-protected bonds Serial bonds General obligation bonds Revenue bonds Question 15.15. (TCO 7) Bonds are classified as a junk bonds if (Points : 4) issued in large volumes. originate within small businesses. its with high default risk. None of the above Question 16.16. (TCO 7) Multinational firms look at Eurocurrency markets as a source of attractively priced working capital loans because (Points : 4) lower regulatory costs allow lenders to offer lower cost loans. with transactions starting at $500,000, economies of scale provide better pricing. higher credit checking costs and other processing costs lowers lending rates. lower regulatory costs allow lenders to offer lower cost loans and With transactions starting at $500,000, economies of scale provide better pricing. Question 17.17. (TCO 8) In a decreasing rate environment, with an ARM, most likely the (Points : 4) borrower's payments will increase. maturity of the loan will be extended. principal of the loan will increase. borrower's payments will decrease. Question 18.18. (TCO 8) If a savings and loan (S & L) has a very low net worth position, most likely the S & L would (Points : 4) invest in conventional fixed-rate loans. invest in variable-rate loans. make and sell eligible loans to the FHLMC. make equity-participation mortgages. Question 19.19. (TCO 8) Home equity line popularity increased as a result of The Tax Reform Act of 1986 because (Points : 4) tax deductibility of interest for homeowners was reduced. interest incurred under home equity lines was made tax deductible. banks and savings and loans were given tax incentives to make home equity lines of credit. credit card debt was made tax deductible. Question 20.20. (TCO 8) The Federal Home Loan Mortgage Corporation (Freddie Mac) had an original purpose to (Points : 4) make home loans to low income individuals. purchase the conventional mortgages from thrift institutions. purchase the insured conventional mortgages from financial institutions. purchase the government insured mortgages from thrift institutions