Chapter6 Practice problem

Chapter6 Practice problem - Chapter 6 Practice Problems 1....

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 6 Practice Problems 1. Which of the following is not a money market security? A) Treasury bill B) negotiable certificate of deposit C) common stock D) federal funds 2. ________ are sold at an auction at a discount from par value. A) Treasury bills B) Repurchase agreements C) Banker’s acceptances D) Commercial paper 3. Mary King, a private investor, purchases a Treasury bill with a $10,000 par value for $9,645. One hundred days later, Mary sells the T-bill for $9,719. What is Mary’s expected annualized yield from this transaction? A) 13.43 percent B) 2.78 percent C) 10.55 percent D) 2.80 percent E) none of the above 4. At any given time, the yield on a T-bill is usually _____ than other money market securities with the same maturity. A) slightly higher than B) slightly less than C) equal to D) A and B both occur with about equal frequency 5. ___________ is a short-term debt instrument issued only be well-known, creditworthy firms and is normally issued to provide liquidity or finance a firm’s investment in inventory and
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

Chapter6 Practice problem - Chapter 6 Practice Problems 1....

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online