ch 10 answers - TUTORIAL FOR CHAPTER 10 BOND MARKET 1 The...

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TUTORIAL FOR CHAPTER 10: BOND MARKET 1. The largest organized security exchange in the US. 2. Security exchange made up of computer networks. 3. STRIPS 4. Issued by business, usually unsecured, not more than 270 days maturity. 5. You sell securities with the obligation to buy it at agreed day in future. 6. Municipal bonds backed by the full faith and credit of the issuer; 7. Bonds rated below the investment grade. 8. Bank issued short-term security, usually sold in large denominations; maturity is fixed. 9. Municipal bonds backed only by cash flows from the project. 10. Financial Institutions that aggregate money from a group of small investors and invest it in money market instruments. 11. Bonds issued by the certain agencies of the US government. 12. Bonds adjusted for inflation. 13. The contract that states the lender’s rights and borrower’s obligations. 14. The conditions under which the issuer has a right to force the holder to sell the bond back. 15. Funds set aside by the issuer of a bond to pay for the redemption of the bond when it matures. 16. Long term unsecured bonds backed by the borrower’s creditworthiness. 17. Rules and restrictions on managers designed to protect the bondholder’s interest. 18. MEAKAM (Treasury bonds with maturity more that 10 years) 19. MEKKAM (Treasury bill with maturities from 3 months to 12 months) 20. MEOKAM (Medium term Treasury bonds with maturity from 2 to 10 years) 21. MEИKAM (Indexed Treasury bonds with maturity from 3 months to 7 years)
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This note was uploaded on 10/16/2011 for the course FINANCE 101 taught by Professor Sanghoonlee during the Three '11 term at University of Wollongong, Australia.

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ch 10 answers - TUTORIAL FOR CHAPTER 10 BOND MARKET 1 The...

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