Unit 2 Flashcards
1
Q
Characteristics of General Obligation Bonds (2)
A
- Backed by gov’t
- Repaid through taxes
2
Q
Indenture
A
Sets promises of issuer and rights to lenders
3
Q
How Current Yield Is Calculated
A
On basis of current market value
4
Q
What characteristic of currency makes an investor benefit from foreign bond
A
U.S. Dollar weakening, Foreign currency strengthening
5
Q
What Is Used As Risk-Free Rate of Return
A
91-day Treasury bill rate
6
Q
Which agency’s securities are guaranteed by the U.S. government?
A
Ginnie Mae
