Treasury bond are all registered and traded separately

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1. When the coupon payments and principal from a treasury bond are all registered and traded separately, they are called ________.

CFNs

FRNs

STRIPs

TIPS

2. _____ is when dealers buy up all of the components of a STRIP and create a new bond.

unstripping

reconstitution

repurchase agreements

remediation

3. From an investor's perspective, the attractiveness of municipal securities is due to their ________.

tax treatment at the federal income tax level.

exemption from capital gains at the state income tax level.

exemption from capital gains federal income tax level.

All of these

4. Which of the following bonds would have the highest after-tax yield for an investor in the 25% marginal tax bracket?

Taxable municipal bond with a 3.5% yield.

Tax exempt municipal bond with a 3% yield.

Tax exempt municipal bond with a 3.5% yield.

T-Bond with a 4% yield.

5. For common stock investors, the return realized by holding this investment depends on ________.

dividend payments

increases in the price of the stock

decreases in the price of the stock

All of these

Reference no: EM131954745

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