WorksheetsINV617 GROUP 4 - TUTORIAL CHAPTER 1
Total questions: 13
Worksheet time: 13mins
The following shows features of debt securities, EXCEPT
Yield
Par value
Dividend
Provising of paying off bonds
Which of the following is a way to pay off bonds?
Deposit money
Sinking fund provision
Bidding auction
Secondary markets
___ issued by the larger corporations and industrial entities to finance their short-term operations.
Secured bond
Medium term notes (MTN)
Commercial papers
Asset-backed securities (ABS)
The statements given below shows some characteristics of a straight bond,
EXCEPT
A bond with no special features
Fixed income securities in the overnight money market segment of fixed income markets
Has a coupon that is paid to bondholders periodically
The issuer repays the principal at maturity
The promised payments that the issuer agrees to make at the specified dates consist of
Lender or creditor
Interest and principal
Borrower
Ownership interest
____of a bond is the amount that the issuer agrees to repay the bondholder at or by the maturity date.
Coupon rate
Accrued interest
Yield
Par value
The price of a bond with certain types of embedded options depends on ___.
Interest rates level
Market sentiments
Government intervention
Credit ratings
Expected interest-rate volatility surge will influenced the value of option to__.
Remain unchanged
Rises
Drops
Depends on the Macaulay duration
"The primary measure of liquidity is the size of the spread between the bid price and the ask price quoted by a dealer"
Which of the below is considered logic and thinkable?
The narrow the dealer spread, the more liquidity risk.
The wider the dealer spread, the less the liquidity risk.
The more the same the dealer spread, the less the liquidity risk.
The wider the dealer spread, the more the liquidity risk.
Which of the following are types of fixed income securities?
Bond with embedded options
Accrued interest
Provision of paying off bonds
Preferred stock
Bonds that are not contracted to make periodic
coupon payments are called __.
Deferred coupon bond
Straight bond
Derivatives
Zero Coupon Bond
The risk that an issuer’s debt obligation will decline due to an increase in the credit spread.
This is the type of?
Default risk
Credit spread risk
Downgrade risk
These are the characteristics of fixed income securities:
-A bond with no special features.
-The issuer repays the principal at maturity.
What type of characteristics fixed income securities is above?
Straight bond
Bonds with embedded options
Mortgage-backed securities
