Exam 2: Asset Classes and Financial Instruments

An investor purchases one municipal and one corporate bond that pay rates of return of 7.5% and 10.3%,respectively.If the investor is in the 25% marginal tax bracket,his or her after tax rates of return on the municipal and corporate bonds would be ________ and ______,respectively.

The index that includes the largest number of actively traded stock is:

You sold a futures contract on corn at a futures price of 331 and at the time of expiration the price was 343.What was your profit or loss?

The smallest component of the money market is

The money market is a subsector of the

The Dow Jones Industrial Average (DJIA)is computed by:

The ____ index represents the performance of the Canadian stock market.

Which one of the following terms best describes Eurodollars?

Bond market indexes can be difficult to construct because

Certificates of deposit are insured for up to ____________ in the event of bank insolvency.

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

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

Which of the following statements regarding the Dow Jones Industrial Average (DJIA)is false?

A form of short-term borrowing by dealers in government securities is

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

In order for you to be indifferent between the after tax returns on a corporate bond paying 8.5% and a tax-exempt municipal bond paying 6.12%,what would your tax bracket need to be?

Suppose an investor is considering a corporate bond with a 7.17% before-tax yield and a municipal bond with a 5.93% before-tax yield.At what marginal tax rate would the investor be indifferent between investing in the corporate and investing in the muni?

A call option allows the buyer to

The maximum maturity of commercial paper that can be issued without SEC registration is ____________.

The ____ index represents the performance of the Hong Kong stock market.