0

Multiple Choice

0

A) Which of the following statements is true?
B) The more marketable a security, the higher its yield.
C) The longer the security's term to maturity, the greater its yield.
D) Putable bonds offer higher yields than similar non-putable bonds
E) Taxable bonds have to offer higher before-tax yields than comparable tax-exempt bonds.
Use the following interest rate data to answer the next seven questions.
90-day Treasury bills 8.36 percent
180-day Treasury bills 8.48 percent
2-year Treasury notes 9.10 percent
3-year Treasury notes 9.25 percent
90-day Commercial paper 9.15 percent
3-year Corporate bonds (AA) 10.10 percent
3-year Municipal (AA) 7.07 percent
Expected 2-year inflation rate 3.50 percent