Which of the following statements about U.S. Agency bonds are true? I. They are backed by the "full faith and credit"...
Which of the following statements about U.S. Agency bonds are true?
I. They are backed by the "full faith and credit" of the U.S. government.
II. Their risk is almost as low as government notes and bonds.
III. Their yields are slightly higher than those of government securities.
IV. They are exempt from state and federal taxes.
Homework Answers
Answer: Options II and III are true
The risk associated with the U.S. Agency bonds is almost as low as
government notes and bonds and their yields are slightly higher
than those of government securities.
Add Answer to:
Which of the following statements about U.S. Agency bonds are true? I. They are backed by the "full faith and credit"...
Consider the following statements regarding sampling. Which of the following are true statements? I. Attribute sampling...
Consider the following statements regarding sampling. Which of the following are true statements? I. Attribute sampling is appropriate when estimating the “true” monetary value of an account balance. II. A haphazardly selected sample may be used with attribute sampling techniques. III. Judgmental sampling typically yields larger sample sizes than statistical sampling. IV. Statistical sampling allows the auditor to quantify and control for sampling risk. I, IV II, III I, III, IV IV
66. Which of the following statements is (are) true with respect to the characteristics of the...
66. Which of the following statements is (are) true with respect to the characteristics of the various types of asset-backed securities (ABS) that are available? I. The prepayment rate on manufactured housing-backed securities tends to be significantly less than that on mortgage-backed securities. II. The level of interest rates is the primary factor in determining the prepayment rate on automobile loan-backed securities. III. Absolute prepayment rate is applied to the original loan balance of the pool, as opposed to its...
Which of the following statements about convertible bonds are true? I. The conversion price does not...
Which of the following statements about convertible bonds are true? I. The conversion price does not change over time. II. The associated stocks may not pay dividends as long as the bonds are outstanding. III. Most convertibles are also callable at the discretion of the firm. IV. They may be thought of as straight bonds plus a call option.
All of the following statements are true about marginal cost except I. marginal cost increases as...
All of the following statements are true about marginal cost except I. marginal cost increases as production expands. II. when marginal cost is below average cost, average cost is falling. III. when marginal cost is above average cost, average cost is constant. IV. when marginal cost meets the average total cost, the average total cost is at its minimum point. II and III I only II only III only III and IV IV only Which of the following is an...
17. Which is true about Treasury notes and bonds? (May be more than one) a. They...
17. Which is true about Treasury notes and bonds? (May be more than one) a. They pay annual coupon payments b. They are now issued in both bearer and book entry format c. Their secondary market is very active d. The interest earned on them is exempt from State and Local Income taxes e. The interest earned on them is exempt from Federal, State and Local Income taxes f. Treasury notes pay annual interest while Treasury bonds pay semiannual interest...
Whis of the following is true about callable bonds? I. If called, must always be at...
Whis of the following is true about callable bonds? I. If called, must always be at par value II. Will normally be called after interest rates have dropped III. Can be called by either the bond holder of the bond issuer IV. Carry higher interest rates when issued due to the callable feature A. II and Iv, only B. All four are true C. I and II, only D. II and III, only
The following are true statements about YTM returns on Bonds based on empirical observation and data...
The following are true statements about YTM returns on Bonds based on empirical observation and data available for the case of USA, EXCEPT: Interest rates across different types of bonds tend to follow the same long term! trends. Short term government bonds tend to report higher returns than long term government bonds. Corporate bonds tend to report higher returns than Government Bonds of same! maturity level. Municipal Bonds tend to report lower returns than Federal Treasury Bonds of same maturity....
Which one of the following is true? Interest Rate Risk is the risk that arises for...
Which one of the following is true? Interest Rate Risk is the risk that arises for bond owners from fluctuating interest rates. All other things being equal, the higher the coupon rate, the greater the interest rate risk. Interest Rate Risk is the risk that arises for bond owners from fluctuating interest rates. All other things being equal, the shorter the time to maturity, the lower the interest rate risk. O When comparing a 20-year bond versus a 1-year bond,...
Which of the following statements is/are INCORRECT? I. Beta measures a security's market risk, also known...
Which of the following statements is/are INCORRECT? I. Beta measures a security's market risk, also known as systematic risk. II. SML is a graphical depiction of WACC model. III. If investors become more risk averse, the slope of SML will increase accordingly. IV. Other things being equal, a security's required rate of return doubles when its beta value doubles. V. Diversification will normally reduce the riskiness of a portfolio of securities. VI. Federal Reserve cuts an interest rate is considered...
Which of the following statements is (are) TRUE? I) Risk-aversion investors accept investments that are fair...
Which of the following statements is (are) TRUE? I) Risk-aversion investors accept investments that are fair games II) Risk-neutral investors judge investments only by expected returns – risk is not relevant III) Risk-averse and risk loving investors consider both an investment’s risk and return IV) Highly risk-averse investors would still allocate a small portion of their savings to stocks Choose from the options below: a) II only b) I only c) II,III and IV only d) I and II only...
17. Which is true about Treasury notes and bonds? (May be more than one) a. They pay annual coupon payments b. They are now issued in both bearer and book entry format c. Their secondary market is very active d. The interest earned on them is exempt from State and Local Income taxes e. The interest earned on them is exempt from Federal, State and Local Income taxes f. Treasury notes pay annual interest while Treasury bonds pay semiannual interest...
The following are true statements about YTM returns on Bonds based on empirical observation and data available for the case of USA, EXCEPT: Interest rates across different types of bonds tend to follow the same long term! trends. Short term government bonds tend to report higher returns than long term government bonds. Corporate bonds tend to report higher returns than Government Bonds of same! maturity level. Municipal Bonds tend to report lower returns than Federal Treasury Bonds of same maturity....
Which one of the following is true? Interest Rate Risk is the risk that arises for bond owners from fluctuating interest rates. All other things being equal, the higher the coupon rate, the greater the interest rate risk. Interest Rate Risk is the risk that arises for bond owners from fluctuating interest rates. All other things being equal, the shorter the time to maturity, the lower the interest rate risk. O When comparing a 20-year bond versus a 1-year bond,...
Which of the following statements is/are INCORRECT? I. Beta measures a security's market risk, also known as systematic risk. II. SML is a graphical depiction of WACC model. III. If investors become more risk averse, the slope of SML will increase accordingly. IV. Other things being equal, a security's required rate of return doubles when its beta value doubles. V. Diversification will normally reduce the riskiness of a portfolio of securities. VI. Federal Reserve cuts an interest rate is considered...
Most questions answered within 3 hours.
-
The factory method and the abstract factory pattern use
different object oriented
mechanisms are used to...
asked 34 minutes ago -
Given the data below for the monthly sales data at each branch in
your region for...
asked 1 hour ago -
Blossom Company owns 10000 of the 50000 outstanding shares of
Taylor, Inc. common stock. During 2018,...
asked 2 hours ago -
Calculate the following: ***SHOW ALL WORK!!!! Or
NO CREDIT*** Circle your answers. 8pts
each
In the...
asked 4 hours ago -
Bank Z is currently advertising interest rates on its checking
account. They claim to pay an...
asked 3 hours ago -
List two ways of transformation on the response variable that
can be used to deal with...
asked 4 hours ago -
If a 2000 ohm resistor has a -3.90 mA current going through it.
What is the...
asked 4 hours ago -
Please comment on the sentences.
Some types of jobs require more training than others. Some
companies...
asked 6 hours ago -
The )G01 for the hydrolysis of phosphorarginine
reaction depicted below is –32 kJ mol-1.
Phosphoarginine ...
asked 6 hours ago -
Cross a heterozygous blue-eyed goat with a homozygous brown-eyed
goat. Be sure to indicate which kids...
asked 7 hours ago -
Use the following information to answer the next two
questions.
Please refer to question 9-90. A...
asked 7 hours ago -
A solution containing 0.050 g of an unknown electrolyte in 2.50
g of cyclohexane was found...
asked 7 hours ago