fin 360 exam - 1. Financial intermediary can offer safer...

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1. Financial intermediary can offer safer liquidity investment capital market security even though the intermediary investment is risky 2. A security has an expected return less than its required return . the security is a) Selling at a premium to par b) Selling at a discount to par c) Selling for more than its fpv 3. A holder of rainbow funds convertible bonds with a $1000 price can convert to bonds 20shares of common stock. The stock is currently priced 13.46% 4. An annuity and an annuity due with the same number of payments have the same future value if r = 10% which one has the higher payment => The annuity has the higher pmt 5. Which of the following bond terms are generally positively related to bond price volatility? I. Coupon rate II. Maturity III.Ytm IV. Pmt frequently Answer: II only 6. Bank a has an increase in deposits at $10 mil dollars and reserve requirement 7. A dealer is quoting a $10.000 face 60 day t bill quoted at 3.22 bid, 3.14 ask. You buy this bill at …or sell it at….
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This note was uploaded on 07/03/2011 for the course ECON 101 taught by Professor Ramiz during the Spring '11 term at Abilene Christian University.

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fin 360 exam - 1. Financial intermediary can offer safer...

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