Question

A bond issue containing a range of maturity dates is called a ____ bond. A. junk...

A bond issue containing a range of maturity dates is called a ____ bond.

A. junk

B. bearer

C. serial

D. registered

E. term

Which of the following is true about STRIPS ?

A. STRIPS provide investors with protection against inflation.

B. STRIPS are good for immunizing portfolios from interest rate risk.

C. STRIPS are issued directly by the U.S. Treasury.

D. STRIPS accrued interest is taxed only when the security matures or is sold and not on the annual basis.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

A bond issue containing a range of maturity dates is called a serial bond.

A serial bond is a bond issue that is structured so that a portion of the outstanding bonds mature at regular intervals until all of the bonds have matured.

Which of the following is true about STRIPS ?

B. STRIPS are good for immunizing portfolios from interest rate risk.

STRIPS donot provide investors with protection against inflation

STRIPS are not issued directly by US Treasury

STRIPS interest is exempt

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Ques 1 a) Assume an original issue bond with 30 years remaining to maturity which has...
Ques 1 a) Assume an original issue bond with 30 years remaining to maturity which has a coupon rate of 4.5 % and the going rate of interest in the market is 4.5%. Its par value is $1000. b. What would its price be? Show all calculations, either in formulas or in Excel. c. In a above, did you actually have to calculate the price? Could make a reason that the price should be $1000. Ques 2. a) If the...
Many bank loans are pegged to a specific interest rate, meaning the interest rate on the...
Many bank loans are pegged to a specific interest rate, meaning the interest rate on the loan could go up or down during the term of the loan as the benchmark rate changes. What is the rate that serves as a benchmark for most international companies? Federal Funds rate Horizon Value Prime Rate LIBOR With registered bonds the holder must prove US citizenship to receive coupon payments while bearer bonds can be held only by federal employees. True False If...
1. A Treasury bond has a 10% annual coupon and a 10.5% yield to maturity. Which...
1. A Treasury bond has a 10% annual coupon and a 10.5% yield to maturity. Which of the following statements is CORRECT? * a. The bond sells at a price below par. b. The bond has a current yield less than 10%. c. The bond sells at a discount. d. a & c. e. None of the above 2. J&J Company's bonds mature in 10 years, have a par value of $1,000, and make an annual coupon interest payment of...
Multiple Choice 11. Prepayment risk is: A. the risk you will not receive the cash flows...
Multiple Choice 11. Prepayment risk is: A. the risk you will not receive the cash flows on a mortgage-backed security B. the risk that you will receive the cash flows sooner than expected and be forced to invest at a lower rate. C. the risk that you will receive the cash flows later than expected and not be able to invest at current, higher rates. 12. Based on the video Inside the Meltdown, it appeared that the main reason Lehman...
What tools could AA leaders have used to increase their awareness of internal and external issues?...
What tools could AA leaders have used to increase their awareness of internal and external issues? ???ALASKA AIRLINES: NAVIGATING CHANGE In the autumn of 2007, Alaska Airlines executives adjourned at the end of a long and stressful day in the midst of a multi-day strategic planning session. Most headed outside to relax, unwind and enjoy a bonfire on the shore of Semiahmoo Spit, outside the meeting venue in Blaine, a seaport town in northwest Washington state. Meanwhile, several members of...
Delta airlines case study Global strategy. Describe the current global strategy and provide evidence about how...
Delta airlines case study Global strategy. Describe the current global strategy and provide evidence about how the firms resources incompetencies support the given pressures regarding costs and local responsiveness. Describe entry modes have they usually used, and whether they are appropriate for the given strategy. Any key issues in their global strategy? casestudy: Atlanta, June 17, 2014. Sea of Delta employees and their families swarmed between food trucks, amusement park booths, and entertainment venues that were scattered throughout what would...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT