Homework Answers
Question 6
Answer: Asset-Backed Security
The pool of auto and student loans are termed as asset-backed securities.
Agency securities are issued by government-sponsored enterprises and are not a pool of auto or student loans.
Corporate bonds are issued backed by the assets of the company not students loan.
Convertible bonds are issued by the companies and the bondholders can convert the bond to equity. It is not a pool of auto or students loan.
Question 7
FALSE
Treasury notes and Treasury bonds are discount bonds
Question 8
TRUE
The Federal Reserve issues Treasuries in the U.S.
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