Topic: Market Indexes
30.
If a Treasury note has a bid price of $995, the quoted bid price in the
Wall
Street
Journal
would be
31.
In calculating the Standard and Poor’s stock price indices, the adjustment for stock split
occurs
32.
Which of the following statements regarding the Dow Jones Industrial Average (DJIA) is
false?
33.
The index that includes the largest number of actively traded stocks is
34.
A 5.5% 20-year municipal bond is currently priced to yield 7.2%. For a taxpayer in the 33%
marginal tax bracket, this bond would offer an equivalent taxable yield of
35.
If the market prices of each of the 30 stocks in the Dow Jones Industrial Average (DJIA) all
change by the same percentage amount during a given day, which stock will have the
greatest impact on the DJIA?
36.
The stocks on the Dow Jones Industrial Average
37.
Federally sponsored agency debt
38.
Brokers’ calls
39.
A form of short-term borrowing by dealers in government securities is
40.
Which of the following securities is a money market instrument?
41.
The yield to maturity reported in the financial pages for Treasury securities
42.
Which of the following is not a mortgage-related government or government-sponsored
agency?
43.
In order for you to be indifferent between the after-tax returns on a corporate bond paying
8.5% and a tax-exempt municipal bond paying 6.12%, what would your tax bracket need to
be?
44.
What does the term
negotiable
mean with regard to negotiable certificates of deposit?
45.
Freddie Mac and Ginnie Mae were organized to provide
46.
The type of municipal bond that is used to finance commercial enterprises such as the
construction of a new building for a corporation is called
47.
Suppose an investor is considering a corporate bond with a 7.17% before-tax yield and a
municipal bond with a 5.93% before-tax yield. At what marginal tax rate would the investor
be indifferent between investing in the corporate and investing in the muni?
48.
Which of the following are characteristics of preferred stock?
I) It pays its holder a fixed amount of income each year at the discretion of its managers.
II) It gives its holder voting power in the firm.
III) Its dividends are usually cumulative.
IV) Failure to pay dividends may result in bankruptcy proceedings.
49.
Bond market indexes can be difficult to construct because
50.
With regard to a futures contract, the long position is held by
51.
In order for you to be indifferent between the after-tax returns on a corporate bond paying
9% and a tax-exempt municipal bond paying 7%, what would your tax bracket need to be?
52.
In order for you to be indifferent between the after-tax returns on a corporate bond paying
7% and a tax-exempt municipal bond paying 5.5%, what would your tax bracket need to
be?
53.
An investor purchases one municipal and one corporate bond that pay rates of return of
6% and 8%, respectively. If the investor is in the 25% marginal tax bracket, his or her after-
tax rates of return on the municipal and corporate bonds would be ________ and ______,
respectively.
54.
An investor purchases one municipal and one corporate bond that pay rates of return of
7.2% and 9.1%, respectively. If the investor is in the 15% marginal tax bracket, his or her
after-tax rates of return on the municipal and corporate bonds would be ________ and
______, respectively.
Topic: Capital Market Instruments
55.
For a taxpayer in the 25% marginal tax bracket, a 20-year municipal bond currently yielding
5.5% would offer an equivalent taxable yield of
Topic: Capital Market Instruments
56.
For a taxpayer in the 15% marginal tax bracket, a 15-year municipal bond currently yielding
6.2% would offer an equivalent taxable yield of
57.
With regard to a futures contract, the short position is held by
58.
A call option allows the buyer to
59.
A put option allows the holder to
60.
The ____ index represents the performance of the German stock market.