Exam 2: Financial Markets, Asset Classes and Financial Instruments

Consider the following three stocks: Assume at these prices that the value-weighted index constructed with the three stocks is 490.What would the index be if stock B is split 2 for 1 and stock C 4 for 1?

The yield to maturity reported in the financial pages for Treasury securities

The bid price of a T-bill in the secondary market is

An investor purchases one municipal and one corporate bond that pay rates of return of 8% and 10%, respectively.If the investor is in the 20% marginal tax bracket, his or her after-tax rates of return on the municipal and corporate bonds would be ________ and ______, respectively.

You sold a futures contract on corn at a futures price of 3.50, and at the time of expiration, the price was 3.52.What was your profit or loss?

With regard to a futures contract, the short position is held by

Canada's best-known stock market indicator is

The Dow Jones Industrial Average (DJIA) is computed by

The smallest component of the fixed-income market is _______ debt.

Which one of the following terms best describes Eurodollars?

Bond market indexes can be difficult to construct because

A call option allows the buyer to

Commercial paper is a short-term security issued by ________ to raise funds.

The type of municipal bond that is used to finance commercial enterprises, such as the construction of a new building for a corporation, is called

Which of the following statements is true regarding a corporate bond?

Which of the following is true of the Dow Jones Industrial Average?

Which of the following is true regarding a firm's securities?

For a taxpayer in the 25% marginal tax bracket, a 20-year municipal bond currently yielding 5.5% would offer an equivalent taxable yield of

Deposits of commercial banks at the Federal Reserve Bank are called

You purchased a futures contract on corn at a futures price of 3.50, and at the time of expiration, the price was 3.52.What was your profit or loss?