1. Define the term "yield curve."What changes does a steepening yield curve imply?

2. How can traders take advantage of a steepening yield curve?

3. Define a "primary market" and a "secondary market."

4. Firm XYZ issued 5 million new shares in a seasoned equity offering. Did this transaction take place on the primary market or the secondary market?

5. Compare and contrast a direct search market and a broker market. Which one is costlier?

6. Compare and contrast a dealer market and an auction market. Which one is costlier?

Answer rating: 100% (QA)

1 Yield Curve The yield curve is a graphical representation of the relationship between the interest rates yields and the maturity dates of bonds of the same credit quality but different maturity peri... View the full answer