Statements regarding bond trading

Reference no: EM132003025

1. Which of the following statements regarding bond trading is INCORRECT?

A. The long-term bonds issued by the U.S. government are called Treasury Bonds.

B. The long-term bonds issued by state and local governments in the United States are called municipal bonds.

C. The price at which a dealer is willing to sell a security is called the ask price.

D. The price a dealer is willing to pay for a security is called the bid price and it is usually slightly higher than the corresponding ask price.

2. You need to borrow $28,000 to buy a car. The current loan rate is 2.9% APR compounded monthly and you want to pay the loan off in equal monthly payments over 4 years. What is the correct computation to find your monthly payment (C)?

A. C = $28,000 [PVIFA(2.9%/12, 4)]

B. C = $28,000 [1 - (1/1.02948)] /(.029/4)

C. $28,000 = C [1 - (1/1.00241748)] / .002417

D. $28,000 = C [1 - (1 /1.006584)] / .00658

Reference no: EM132003025

Questions Cloud

Does the civil war have any value in todays society : Does the Civil War have any value in today's society or is it simply buried in America's historical past?

Two method headers appear in a single program : These two method headers appear in a single program: //public static int promptForInput(ref string prompt)

Visual studio integrated design environment editor : Describe two ways ways in which the Visual Studio Integrated Design Environment Editor, Compiler, and Debugger are different from the notepad

Examines and presents your own historical interpretation : Examines and presents your own historical interpretation of the topic you have chosen and your interpretation of the information you have gathered.

Statements regarding bond trading : Which of the following statements regarding bond trading is INCORRECT?

Class definition for a class named player : Write a full class definition for a class named Player, and containing the following members: A data member name of type string.

Visual studio integrated design environment editor : Describe two ways ways in which the Visual Studio Integrated Design Environment Editor, Compiler, and Debugger are different from the notepad

Net present value of raising child be determined : How should a discount rate for determining the net present value of raising a child be determined?

How significant a role do new world possessions seem to play : What concessions are forced upon France by England, the victor, and what does England give in return?

User Account

All Pages