Module 3 HW Questions - 1 A Treasury security in which...

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1. A Treasury security in which periodic coupon interest payments can be separated from each other and from the principal payment is called a:
2. A T-Bond with a $1000 par is quoted at 97:14 Bid, 97:15 Ask. The clean price for you to buy this bond is
3. You go to the Wall Street Journal and notice that yields on almost all corporate andTreasury bonds have decreased. The yield decreases may perhaps be explained by which of the following:
4. Current Spot rates for an FI’s assets (loans) and liabilities (CDs). All interest rates are fixed and paid annually. Assets 1-year loan rate: 7.5% year loan rate: 8.15% liabilities 1-year CD rate: 6.50% 2 year CD rate: 6.65%. If rates do not change, the balance sheet position that maximizes the FI’s returns/income is

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