Question 1

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

Accepted Answer

A)  a corporate courtesy bond. 
B)  a revenue bond. 
C)  a general-obligation bond. 
D)  a tax-anticipation note. 
E)  an industrial-development bond. 
A)  a corporate courtesy bond. 
B)  a revenue bond. 
C)  a general-obligation bond. 
D)  a tax-anticipation note. 
E)  an industrial-development bond.

Question 2

The price quotations of Treasury bonds in the Wall Street Journal show an ask price of 104.25 and a bid price of 104.125. As a buyer of the bond, what is the dollar price you expect to pay?

Accepted Answer

A)  $1,048.00 
B)  $1,042.50 
C)  $1,044.00 
D)  $1,041.25 
E)  $1,040.40 
A)  $1,048.00 
B)  $1,042.50 
C)  $1,044.00 
D)  $1,041.25 
E)  $1,040.40

Question 3

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

Accepted Answer

A)  A corporate callable bond gives the holder the right to exchange it for a specified number of the company's common shares. 
B)  A corporate debenture is a secured bond. 
C)  A corporate indenture is a secured bond. 
D)  A corporate convertible bond gives the holder the right to exchange the bond for a specified number of the company's common shares. 
E)  Holders of corporate bonds have voting rights in the company. 
A)  A corporate callable bond gives the holder the right to exchange it for a specified number of the company's common shares. 
B)  A corporate debenture is a secured bond. 
C)  A corporate indenture is a secured bond. 
D)  A corporate convertible bond gives the holder the right to exchange the bond for a specified number of the company's common shares. 
E)  Holders of corporate bonds have voting rights in the company.

Question 4

T-bills are financial instruments initially sold by ________ to raise funds.

Accepted Answer

A)  commercial banks 
B)  the U.S. government 
C)  state and local governments 
D)  agencies of the federal government 
E)  the U.S. government and agencies of the federal government 
A)  commercial banks 
B)  the U.S. government 
C)  state and local governments 
D)  agencies of the federal government 
E)  the U.S. government and agencies of the federal government

Question 5

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

Accepted Answer

A)  the Federal Reserve Bank 
B)  commercial banks 
C)  large, well-known companies 
D)  the New York Stock Exchange 
E)  state and local governments 
A)  the Federal Reserve Bank 
B)  commercial banks 
C)  large, well-known companies 
D)  the New York Stock Exchange 
E)  state and local governments

Question 6

The ____ is an example of a U.S. index of large firms.

Accepted Answer

A)  Wilshire 5000 
B)  DJIA 
C)  DAX 
D)  Russell 2000 
E)  All of the options. 
A)  Wilshire 5000 
B)  DJIA 
C)  DAX 
D)  Russell 2000 
E)  All of the options.

Question 7

Which of the following securities is a money market instrument?

Accepted Answer

A)  Treasury note 
B)  Treasury bond 
C)  Municipal bond 
D)  Commercial paper 
E)  Mortgage security 
A)  Treasury note 
B)  Treasury bond 
C)  Municipal bond 
D)  Commercial paper 
E)  Mortgage security

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

The price quotations of Treasury bonds in the Wall Street Journal show an ask price of 104.25 and a bid price of 104.125. As a buyer of the bond, what is the dollar price you expect to pay?

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

T-bills are financial instruments initially sold by ________ to raise funds.

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

The ____ is an example of a U.S. index of large firms.

Which of the following securities is a money market instrument?

The Investment Environment

How Securities Are Traded

Mutual Funds and Other Investment Companies

Risk, Return, and the Historical Record

Capital Allocation to Risky Assets

Efficient Diversification

Index Models

The Capital Asset Pricing Model

Arbitrage Pricing Theory and Multifactor Models of Risk and Return

The Efficient Market Hypothesis

Behavioral Finance and Technical Analysis

Empirical Evidence on Security Returns

Bond Prices and Yields

The Term Structure of Interest Rates

Managing Bond Portfolios

Macroeconomic and Industry Analysis

Equity Valuation Models

Financial Statement Analysis

Options Markets: Introduction

Option Valuation

Futures Markets

Futures, Swaps, and Risk Management

Portfolio Performance Evaluation

International Diversification

Hedge Funds

The Theory of Active Portfolio Management

Investment Policy and the Framework of the Cfa Institute

Filters

Exam 2: Asset Classes and Financial Instruments

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

The price quotations of Treasury bonds in the Wall Street Journal show an ask price of 104.25 and a bid price of 104.125. As a buyer of the bond, what is the dollar price you expect to pay?

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

T-bills are financial instruments initially sold by ________ to raise funds.

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

The ____ is an example of a U.S. index of large firms.

Which of the following securities is a money market instrument?

The Investment Environment

How Securities Are Traded

Mutual Funds and Other Investment Companies

Risk, Return, and the Historical Record

Capital Allocation to Risky Assets

Efficient Diversification

Index Models

The Capital Asset Pricing Model

Arbitrage Pricing Theory and Multifactor Models of Risk and Return

The Efficient Market Hypothesis

Behavioral Finance and Technical Analysis

Empirical Evidence on Security Returns

Bond Prices and Yields

The Term Structure of Interest Rates

Managing Bond Portfolios

Macroeconomic and Industry Analysis

Equity Valuation Models

Financial Statement Analysis

Options Markets: Introduction

Option Valuation

Futures Markets

Futures, Swaps, and Risk Management

Portfolio Performance Evaluation

International Diversification

Hedge Funds

The Theory of Active Portfolio Management

Investment Policy and the Framework of the Cfa Institute

Filters