Quiz Module 10 ?s Flashcards
A bond pays a coupon rate equal to the LIBOR rate plus 0.30%. The coupon rate is recalculated every three months. What type of bond is this?
An inflation-linked bond
A floating rate note
A zero-coupon bond
A stepped-coupon bond
A floating rate note
A bond makes only one payment—the payment of the face value on the maturity date. The bond is sold at a discount. What type of bond is this?
Stepped-coupon bond
Floating rate note
Inflation-linked bond
Zero-coupon bond
Zero-coupon bond
A US Treasury security matures in 26 weeks. What type of treasury is it?
A bond
A bill
A note
A bank deposit
A bill
A US Treasury security matures in 7 years. What type of security is it?
A note
A money market instrument
A bond
A bill
A note
In the bond market, firms raise debt financing directly from
Government agencies
Loan Officers
Investors
Consumer Banks
Investors
