Question 1

Which of the following is not a true statement regarding municipal bonds?

Accepted Answer

A)  A municipal bond is a debt obligation issued by state or local governments. 
B)  A municipal bond is a debt obligation issued by the Federal Government. 
C)  The interest income from a municipal bond is exempt from federal income taxation. 
D)  The interest income from a municipal bond is exempt from state and local taxation in the issuing state. 
A)  A municipal bond is a debt obligation issued by state or local governments. 
B)  A municipal bond is a debt obligation issued by the Federal Government. 
C)  The interest income from a municipal bond is exempt from federal income taxation. 
D)  The interest income from a municipal bond is exempt from state and local taxation in the issuing state.

Question 2

Which of the following types of bonds are excluded from most bond indices?

Accepted Answer

A)  Corporate bonds 
B)  Junk bonds 
C)  Municipal bonds 
D)  None of the above 
A)  Corporate bonds 
B)  Junk bonds 
C)  Municipal bonds 
D)  None of the above

Question 3

The bid price of a treasury bill is _________.

Accepted Answer

A)  the price at which the dealer in treasury bills is willing to sell the bill 
B)  the price at which the dealer in treasury bills is willing to buy the bill 
C)  greater than the ask price of the treasury bill expressed in dollar terms 
D)  the price at which the investor can buy the treasury bill 
A)  the price at which the dealer in treasury bills is willing to sell the bill 
B)  the price at which the dealer in treasury bills is willing to buy the bill 
C)  greater than the ask price of the treasury bill expressed in dollar terms 
D)  the price at which the investor can buy the treasury bill

Question 4

Treasury notes have initial maturities between ________ years.

Accepted Answer

A)  2 and 4 
B)  5 and 10 
C)  10 and 30 
D)  1 and 10 
A)  2 and 4 
B)  5 and 10 
C)  10 and 30 
D)  1 and 10

Question 5

The yield on tax-exempt bonds is ______.

Accepted Answer

A)  usually less than 50% of the yield on taxable bonds 
B)  normally about 90% of the yield on taxable bonds 
C)  greater than the yield on taxable bonds 
D)  less than the yield on taxable bonds 
A)  usually less than 50% of the yield on taxable bonds 
B)  normally about 90% of the yield on taxable bonds 
C)  greater than the yield on taxable bonds 
D)  less than the yield on taxable bonds

Which of the following is not a true statement regarding municipal bonds?

Which of the following types of bonds are excluded from most bond indices?

The bid price of a treasury bill is _________.

Treasury notes have initial maturities between ________ years.

The yield on tax-exempt bonds is ______.

Investments: Background and Issues

Securities Markets

Mutual Funds and Other Investment Companies

Risk and Return: Past and Prologue

Efficient Diversification

Capital Asset Pricing and Arbitrage Pricing Theory

The Efficient Market Hypothesis

Behavioral Finance and Technical Analysis

Bond Prices and Yields

Managing Bond Portfolios

Macroeconomic and Industry Analysis

Equity Valuation

Financial Statement Analysis

Options Markets

Option Valuation

Futures Markets and Risk Management

Portfolio Performance Evaluation

Globalization and International Investing

Hedge Funds

Taxes,inflation,and Investment Strategy

Investors and the Investment Process

Filters

Exam 2: Asset Classes and Financial Instruments

Which of the following is not a true statement regarding municipal bonds?

Which of the following types of bonds are excluded from most bond indices?

The bid price of a treasury bill is _________.

Treasury notes have initial maturities between ________ years.

The yield on tax-exempt bonds is ______.

Investments: Background and Issues

Securities Markets

Mutual Funds and Other Investment Companies

Risk and Return: Past and Prologue

Efficient Diversification

Capital Asset Pricing and Arbitrage Pricing Theory

The Efficient Market Hypothesis

Behavioral Finance and Technical Analysis

Bond Prices and Yields

Managing Bond Portfolios

Macroeconomic and Industry Analysis

Equity Valuation

Financial Statement Analysis

Options Markets

Option Valuation

Futures Markets and Risk Management

Portfolio Performance Evaluation

Globalization and International Investing

Hedge Funds

Taxes,inflation,and Investment Strategy

Investors and the Investment Process

Filters