homework1_solution - FINAN520 HW1 Solution 1 are examples...

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FINAN520, HW1 Solution 1. __________ are examples of financial intermediaries. A. Commercial banks B. Insurance companies C. Investment companies D. All of the above are financial intermediaries 2. Security selection refers to the ________. A. allocation of the investment portfolio across broad asset classes B. analysis of the value of securities C. choice of specific securities within each asset class D. top down method of investing 3. The price quotations of treasury bonds in the Wall Street Journal show a bid price of 102:12 and an ask price of 102:14. If you sell the bond you expect to receive _________. A. $1,024.75 B. $1,024.38 C. $1,023.75 D. $1,022.50 4. A bond issued by the State of Alabama is priced to yield 6.25%. If you are in the 28% tax bracket this bond would provide you with an equivalent taxable yield of _________. A. 4.50% B. 7.25% C. 8.68% D. none of the above 5. Which of the following is not a true statement regarding municipal bonds? A.
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This note was uploaded on 03/29/2012 for the course ECON 101 taught by Professor Schneider during the Spring '11 term at Kansas State University.

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homework1_solution - FINAN520 HW1 Solution 1 are examples...

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