QUESTION 4 SPACS are special purpose acquisition companies. Which of the following is FALSE? a. They are illegal according to the SEC b. Jaws Acquisition Corp. was established as a SPAC. c. They help companies go public without an IPO. Od SPACs are part of a reverse merger arrangement. QUESTIONS Which of the following describes T-bills? a. They are short term b. They are money market securities. c. There is a large and active secondary market for T-bills, so they are considered liquid. d. All of these truly describe T-bills e. They are considered a "safe haven." QUESTION 6 Which of the following can only be bought and sold by banks? a. None of these can be bought or sold by banks. Cb, CP . -lls d. CD's e Federal Funds QUESTION 7 Which of the following securities have to be registered with the SEC? a. Publicly traded bonds b. Commercial paper None of these have to be registered with the SEC. d. Loans by companies that are not corporations e Stock in private corporations, Interest rates and bond prices... a move in the opposite direction. b. have no relationship to one another Oc move in the same direction d. sometimes move in the same direction and sometimes move in the opposite direction. QUESTION 9 The expected rate of return on a bond if held to maturity is called the a. the expected coupon b. the coupon yield c yield to maturity (YTM) d. current yield e the dividend yield QUESTION 10 Which type of bond requires a higher coupon rate? a. a municipal bond b. a bond with a low credit rating or a junk bond. c. a bond with a sinking fund d, a convertible bond, e. all of these require higher than average coupon rates. QUESTION 11 What type of bond will be attractive enough to offer a low coupon rate? a subordinated debentures b. a premium bond cpreferred share bonds d. a bond with no protective covenants e. a convertible bond If the coupon rate is higher than the market rate of return on a bond.... ait probably has a high bond rating- b. the yield will be higher than the coupon. the bond will trade at a premium. d. the bond will be unattractive to prospective bond investors, e. the bond will trade at a discount. QUESTION 13 If a stock has a Beta - 1.5, o its price fluctuates more than the S&P 500 bits intrinsic value is greater than its market value cits intrinsic value is less than its market value. d. it's a stock that would be attractive to value investors. e. it's not related to the S&P 500 at all Analysts that use fundamental analysis.. a. look carefully at the company's financial ratios to estimate the intrinsic value of the stock Ob usually calculate moving averages of the stock price and the EPS. Oc rely on charts and graphs to decide whether the stock price will probably fall d. rely on charts and graphs to decide whether the stock price will probably rise QUESTION 15 Which of the following is FALSE? a. Momentum investors don't care whether stocks have a low P/E. When the intrinsic value of a stock market price of the stock value investors should buy. b. The "required rate of return" is the same as the term "opportunity cost" and the "expected rate of return d Money market securities do not pay coupon interest
