Unit 2 Flashcards

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1
Q

Characteristics of General Obligation Bonds

A

Backed by gov’t, repaid through taxes

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2
Q

Indenture

A

Sets promises of issuer and rights to lenders

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3
Q

How Current Yield Is Calculated

A

On basis of current market value

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4
Q

What Makes Investor Benefit From Foreign Bond

A

U.S. Dollar weakening, Foreign currency strengthening

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5
Q

What Is Used As Risk-Free Rate of Return

A

91-day Treasury bill rate

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6
Q
A
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