Question 1

Forward rates are also referred to as:

Accepted Answer

A)  Futures rates. 
B)  Hedgeable rates. 
C)  Implicit rates. 
D)  Future oriented rates. 
E)  None of the above. 
A)  Futures rates. 
B)  Hedgeable rates. 
C)  Implicit rates. 
D)  Future oriented rates. 
E)  None of the above.

Question 2

The shape of the yield curve can be explained by:

Accepted Answer

A)  The expectations theory. 
B)  The liquidity theory. 
C)  The preferred habitat theory. 
D)  The market segmentation theory. 
E)  All of the above. 
A)  The expectations theory. 
B)  The liquidity theory. 
C)  The preferred habitat theory. 
D)  The market segmentation theory. 
E)  All of the above.

Question 3

The two elements of a forward rate are:

Accepted Answer

A)  The length of time for the rate. 
B)  The implicit rate. 
C)  When in the future the rate begins. 
D)  a and c only. 
E)  a and b only. 
A)  The length of time for the rate. 
B)  The implicit rate. 
C)  When in the future the rate begins. 
D)  a and c only. 
E)  a and b only.

Question 4

Price risk of a bond occurs when a bond must be sold prior to maturity at an uncertain price because the:

Accepted Answer

A)  Yield is determined by the Federal Reserve. 
B)  Future return or yield is unknown. 
C)  Future yield is expected to be less than the coupon rate. 
D)  b and c only. 
E)  None of the above. 
A)  Yield is determined by the Federal Reserve. 
B)  Future return or yield is unknown. 
C)  Future yield is expected to be less than the coupon rate. 
D)  b and c only. 
E)  None of the above.

Question 5

The market segmentation theory proposes that the major reason for the shape of the yield curve lies in asset/liability management constraints.

Accepted Answer

A) True 
 B)False

Forward rates are also referred to as:

The shape of the yield curve can be explained by:

The two elements of a forward rate are:

Price risk of a bond occurs when a bond must be sold prior to maturity at an uncertain price because the:

The market segmentation theory proposes that the major reason for the shape of the yield curve lies in asset/liability management constraints.

Introduction

Overview of Market Participants and Financial Innovation

Depository Institutions

Insurance Companies

Asset Management Firms

Investment Banking Firms

Primary and Secondary Markets

Risk and Return Theories: I

Risk and Return Theories: II

Introduction to Financial Futures Markets

Introduction to Options Markets

Introduction to the Swaps, Caps, and Floors Markets

Common Stock Market: I

Common Stock Market: II

Stock Options Market

The Market for Stock Index Products and Other Equity Derivatives

The Theory and Structure of Interest Rates

Valuation of Debt Contracts and Their Price Volatility Characteristics

Money Markets

Treasury and Agency Securities Markets

Corporate Senior Instruments Markets: I

Corporate Senior Instruments Markets: II

Municipal Securities Markets

The Residential Mortgage Market

The Market for Residential Mortgage-Backed Securities

Market for Asset-Backed Securities

Market for Commercial Mortgage Loans and Commercial Mortgage-Backed Securities

International Bond Markets

International Bond Markets

Market for Interest Rate Risk Transfer Vehicles: OTC Instruments

The Market for Foreign Exchange and Risk Control Instruments

Filters

Exam 19: The Term Structure of Interest Rates

Forward rates are also referred to as:

The shape of the yield curve can be explained by:

The two elements of a forward rate are:

Price risk of a bond occurs when a bond must be sold prior to maturity at an uncertain price because the:

The market segmentation theory proposes that the major reason for the shape of the yield curve lies in asset/liability management constraints.

Introduction

Overview of Market Participants and Financial Innovation

Depository Institutions

Insurance Companies

Asset Management Firms

Investment Banking Firms

Primary and Secondary Markets

Risk and Return Theories: I

Risk and Return Theories: II

Introduction to Financial Futures Markets

Introduction to Options Markets

Introduction to the Swaps, Caps, and Floors Markets

Common Stock Market: I

Common Stock Market: II

Stock Options Market

The Market for Stock Index Products and Other Equity Derivatives

The Theory and Structure of Interest Rates

Valuation of Debt Contracts and Their Price Volatility Characteristics

Money Markets

Treasury and Agency Securities Markets

Corporate Senior Instruments Markets: I

Corporate Senior Instruments Markets: II

Municipal Securities Markets

The Residential Mortgage Market

The Market for Residential Mortgage-Backed Securities

Market for Asset-Backed Securities

Market for Commercial Mortgage Loans and Commercial Mortgage-Backed Securities

International Bond Markets

International Bond Markets

Market for Interest Rate Risk Transfer Vehicles: OTC Instruments

The Market for Foreign Exchange and Risk Control Instruments

Filters