Question: 26. A euro floating rate note differs from regular eurobonds in that it: a. differs substantially in default risk. b. has coupons that are regularly
26.
A euro floating rate note differs from regular eurobonds in that it:
a.
differs substantially in default risk.
b.
has coupons that are regularly reset.
c.
has a longer maturity.
d.
is not taxed.
27.
A company issues a 30-day bill with a face value of $500000, yielding 8.25% per annum. What price will be paid for this bill?
a.
$458750
b.
$496610
c.
$496586
d.
$496632
28.
Which of the following statements about bank bills is NOT correct?
a.
The cost of bill financing is generally lower than on a bank overdraft.
b.
The interest rate on a bank overdraft is generally higher than the yield on a Treasury bond.
c.
The interest rate on a bank overdraft is generally higher than the yield on a Treasury note.
d.
The interest rate on a bank bill is generally lower than the yield on a Treasury note.
29.
Which maturity date is NOT likely for a bank bill?
a.
90 days
b.
30 days
c.
180 days
d.
360 days
30.
Which of the following is a benefit of a eurocommercial paper (ECP) issue?
a.
An ECP issue is a medium-term facility with maturities generally longer than ten years.
b.
An ECP issue is a fixed-interest security with annual coupon payments.
c.
Generally, only a lead manager is required for an ECP issue.
d.
An ECP issue can deliver cheaper funds for best-name borrowers.
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