Question: (3 points) Explain how one can know if a bond will be selling at par, premium, or discount if all a person knows is the

  1. (3 points) Explain how one can know if a bond will be selling at par, premium, or discount if all a person knows is the coupon rate and the yield to maturity for the bond.

  1. (2 points) What is the difference between a mortgage bond and a mortgage-backed bond?

  1. (2 points) What is the difference between an indenture bond and a debenture?

  1. (2 points) What is a Bankers Acceptance and when/how does it become a money market instrument?

5. (3 points) What is a repurchase agreement and why is it less risky than a dealer loan?

6. (2 points) What is a negotiable CD?

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