Solomon Islands - Day Two Recap

Is a concessional loan considered a marketable security?

• Yes - it can be easily tradeable on the secondary market.

• No - because it has specific covenants or conditions.

Does the information within a Debt Managment Report primarily focus on the past year, or the next/coming year?

• Both

• Past

• Future

The Present Value is known as the...

• ...future value of a sum of money that you will receive now.

• ...current value of a sum of money that you will receive in the future.

Maturity refers to the date when the bond or loan principal value and final interest is repaid?

• False

• Neither.

  Duration is the term that refers to the date when a bond or loan principal value and final interest is repaid.

• True

The actual/365 market convention calculates the daily interest using a 360-day year and then multiplies that by the actual number of days in each time period.

• True

• False

All bids in a Uniform Price Auction at or below the 'stop-out' (chart bids 1 to 4 - below the red line) yield receive the stop-out yield?

• True

• False

A competitive auction process is where bids are accepted from the lowest yield until the pre-announced volume required is filled.

• True

• False

In a closed auction, can all investors participate directly in the auction, or only via a select panel of "Primary Dealers".

• Investors can only participate via Primary Dealers Only

• Both

• All investors can participate directly in the auction.

Should the role of Investor Relations be a about a one-way or two-way dialogue with Investors?

• One-way

• Two-way

• No dialogue is needed.

A market where investors buy and sell securities for each other is referred to as...

• Primary Market

• Secondary Market

• Tertiary Market