Question: 13_ The over-the-counter ( OTC ) market is a market for smaller and unlisted securities, True False 14_ Assume that Muscat Inc. has an issue

13_ The over-the-counter (OTC) market is a market for smaller and unlisted securities,

True

False

14_ Assume that Muscat Inc. has an issue of 18 - year OMR 1,000 par value bonds that pay 7% interest , annually . Further, assume that today's required rate of return on these bonds is 5%. How much would these bonds sell for today ? Round off to the nearest OMR 1 .

a . OMR 1,032.56 .

B.None of the answers are correct

C. OMR 1,233.79

d . OMR 1,134.88

e . OMR 1,201.32

15_ A money market security , where , a bank accepts responsibility for future payments is referred to as

a . Repurchase agreements or Repos

b . None of the answers are correct

c . Commercial paper

d. Treasury bills

e . Banker's acceptances

16_ An upward - sloping yield curve that indicates cheaper short - term borrowing costs than long - term borrowing costs is called as

a . inverted yield curve

b . flat yield curve

c . None of the answers are correct

d . lognormal yield curve

e , normal yield curve

17-TIPS offer a fixed coupon rate with respect to the consumer price index

True

False

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