Question: No need explain !!!!!!!!!!!!!!!!! a)A company issues floating-rate bonds. The coupon rate is expressed as the three-month Libor plus a spread. The coupon payments are
No need explain !!!!!!!!!!!!!!!!!
a)A company issues floating-rate bonds. The coupon rate is expressed as the three-month Libor plus a spread. The coupon payments are most likely to increase as:
Select one:
A. the companys credit quality decreases.
B. the inflation rate increases.
C. the spread increases.
D. Libor increases.
b)A fixed-income security issued with a maturity at issuance of nine months is most likely classified as a:
Select one:
A. securitized investment.
B. capital market security.
C. money market security.
D. low risk security.
c)US Treasury bonds are typically sold to the public via a(n):
Select one:
A. primary dealer.
B. secondary bond market.
C. auction.
D. stock exchange.
d)In anticipation of a weaker US dollar, one would expect
Select one:
A. US exports to be more competitive.
B. US trade deficit to grow.
C. foreign exports to increase.
D. no economic impact on exports.
e)Sovereign bonds with a maturity at issuance shorter than one year are most likely:
Select one:
A. zero-coupon bonds.
B. callable bonds.
C. floating-rate bonds.
D. coupon-bearing bonds.
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