Archive for April, 2006
Corporate Bonds Sale
April 21st, 2006
Question: Fed purchases and sales consist mainly of...?
A) municipal bonds
B) commercial paper
D) government securities
Answer: D) Government Securities. This is a method of monetary policy and can be used to expand or contract the economy.
BTMU Preps Record Bond Sale - Feb 19
Corporate Bonds And Risk
April 6th, 2006
Question: The differences in rates among these issues were caused primarily by _________.?
Assume that interest rates on 20-year Treasury and Corporate Bonds are as follows:
T-bond = 7.72%
AAA = 8.72%
A = 9.64%
BBB = 10.18%
The differences in rates among these issues were caused primarily by _________.
a. tax effects
b. default risk differences.
c. maturity risk differences.
d. inflation differences.
e. real risk-free rate differences.
Answer: b. Default risk differences.
Municipal Bonds Vs. Corporate Bonds
Posted in Corporate Bonds 101 | 
Tags: bonds, business, corporate bonds and risk, economics, finance, research | 
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