第八章债券市场.docx

第八章债券市场.docx

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第八章债券市场

Chapter8TheBondMarket

8.1SingleChoice

1）Comparedtomoneymarketsecurities,capitalmarketsecuritieshave

A）moreliquidity.

B）longermaturities.

C）loweryields.

D）lessrisk.

2）（I）Securitiesthathaveanoriginalmaturitygreaterthanoneyeararetradedincapitalmarkets.（II）Thebestknowncapitalmarketsecuritiesarestocksandbonds.

A）（I）istrue,（II）false.

B）（I）isfalse,（II）true.

C）Botharetrue.

D）Botharefalse.

3）（I）Securitiesthathaveanoriginalmaturitygreaterthanoneyeararetradedinmoneymarkets.（II）Thebestknownmoneymarketsecuritiesarestocksandbonds.

A）（I）istrue,（II）false.

B）（I）isfalse,（II）true.

C）Botharetrue.

D）Botharefalse.

4）（I）Firmsandindividualsusethecapitalmarketsforlong-terminvestments.（II）Thecapitalmarketsprovideanalternativetoinvestmentinassetssuchasrealestateandgold.

A）（I）istrue,（II）false.

B）（I）isfalse,（II）true.

C）Botharetrue.

D）Botharefalse.

5）Theprimaryreasonthatindividualsandfirmschoosetoborrowlong-termistoreducetheriskthatinterestrateswill_________beforetheypayofftheirdebt.

A）rise

B）fall

C）becomemorevolatile

D）becomemorestable

6）Afirmthatchoosestofinanceanewplantbyissuingmoneymarketsecurities

A）mustincurthecostofissuingnewsecuritiestorolloveritsdebt.

B）runstheriskofhavingtopayhigherinterestrateswhenitrollsoveritsdebt.

C）incursboththecostofreissuingsecuritiesandtheriskofhavingtopayhigherinterestratesonthenewdebt.

D）ismorelikelytoprofitifinterestratesrisewhiletheplantisbeingconstructed.

7）Theprimaryreasonthatindividualsandfirmschoosetoborrowlong-termisto

A）reducetheriskthatinterestrateswillfallbeforetheypayofftheirdebt.

B）reducetheriskthatinterestrateswillrisebeforetheypayofftheirdebt.

C）reducemonthlyinterestpayments,asinterestratestendtobehigheronshort-termthanlong-termdebtinstruments.

D）reducetotalinterestpaymentsoverthelifeofthedebt.

8）Afirmwillborrowlong-term

A）iftheextrainterestcostofborrowinglong-termislessthantheexpectedcostofrisinginterestratesbeforeitretiresitsdebt.

B）iftheextrainterestcostofborrowingshort-termduetorisinginterestratesdoesnotexceedtheexpectedpremiumthatispaidforborrowinglongterm.

C）ifshort-terminterestratesareexpectedtodeclineduringthetermofthedebt.

D）iflong-terminterestratesareexpectedtodeclineduringthetermofthedebt.

9）Theprimaryissuersofcapitalmarketsecuritiesinclude

A）thefederalandlocalgovernments.

B）thefederalandlocalgovernments,andcorporations.

C）thefederalandlocalgovernments,corporations,andfinancialinstitutions.

D）localgovernmentsandcorporations.

10）Governmentsneverissuestockbecause

A）theycannotsellownershipclaims.

B）theConstitutionexpresslyforbidsit.

C）bothAandBoftheabove.

D）neither（a）nor（b）oftheabove.

11）（I）Theprimaryissuersofcapitalmarketsecuritiesarefederalandlocalgovernments,andcorporations.（II）Governmentsneverissuestockbecausetheycannotsellownershipclaims.

A）（I）istrue,（II）false.

B）（I）isfalse,（II）true.

C）Botharetrue.

D）Botharefalse.

12）（I）Theprimaryissuersofcapitalmarketsecuritiesarefinancialinstitutions.

（II）Thelargestpurchasersofcapitalmarketsecuritiesarecorporations.

A）（I）istrue,（II）false.

B）（I）isfalse,（II）true.

C）Botharetrue.

D）Botharefalse.

13）Thedistributionofafirm'scapitalbetweendebtandequityisits

A）currentratio.

B）liabilitystructure.

C）acidratio.

D）capitalstructure.

14）Thelargestpurchasersofcapitalmarketsecuritiesare

A）households.

B）corporations.

C）governments.

D）centralbanks.

15）Individualsandhouseholdsfrequentlypurchasecapitalmarketsecuritiesthroughfinancialinstitutionssuchas

A）mutualfunds.

B）pensionfunds.

C）moneymarketmutualfunds.

D）alloftheabove.

E）onlyAandBoftheabove.

16）（I）Therearetwotypesofexchangesinthesecondarymarketforcapitalsecurities:

organizedexchangesandover-the-counterexchanges.（II）Whenfirmssellsecuritiesfortheveryfirsttime,theissueisaninitialpublicoffering.

A）（I）istrue,（II）false.

B）（I）isfalse,（II）true.

C）Botharetrue.

D）Botharefalse.

17）（I）Capitalmarketsecuritiesfallintotwocategories:

bondsandstocks.（II）Long-termbondsincludegovernmentbondsandlong-termnotes,municipalbonds,andcorporatebonds.

A）（I）istrue,（II）false.

B）（I）isfalse,（II）true.

C）Botharetrue.

D）Botharefalse.

18）The_________valueofabondistheamountthattheissuermustpayatmaturity.

A）market

B）present

C）discounted

D）face

19）The_________rateistherateofinterestthattheissuermustpay.

A）market

B）coupon

C）discount

D）funds

20）（I）Thecouponrateistherateofinterestthattheissuerofthebondmustpay.

（II）Thecouponrateisusuallyfixedforthedurationofthebondanddoesnotfluctuatewithmarketinterestrates.

A）（I）istrue,（II）false.

B）（I）isfalse,（II）true.

C）Botharetrue.

D）Botharefalse.

21）（I）Thecouponrateistherateofinterestthattheissuerofthebondmustpay.（II）Thecouponrateonoldbondsfluctuateswithmarketinterestratessotheywillremainattractivetoinvestors.

A）（I）istrue,（II）false.

B）（I）isfalse,（II）true.

C）Botharetrue.

D）Botharefalse.

22）Treasurybondsaresubjectto_________riskbutarefreeof_________risk.

A）default;interest-rate

B）default;underwriting

C）interest-rate;default

D）interest-rate;underwriting

23）ThepricesofTreasurynotes,bonds,andbillsarequoted

A）asapercentageofthecouponrate.

B）asapercentageofthepreviousday'sclosingvalue.

C）asapercentageof$100facevalue.

D）asamultipleoftheannualinterestpaid.

24）ThesecuritywiththelongestmaturityisaTreasury

A）note.

B）bond.

C）acceptance.

D）bill.

25）（I）Tosellanoldbondwheninterestrateshaverisen,theholderwillhavetodiscountthebonduntiltheyieldtothebuyeristhesameasthemarketrate.（II）Theriskthatthevalueofabondwillfallwhenmarketinterestratesriseiscalledinterest-raterisk.

A）（I）istrue,（II）false.

B）（I）isfalse,（II）true.

C）Botharetrue.

D）Botharefalse.

答案:

1-5:

BCDCA6-10:

CBABA11-15:

CDDAE16-20:

CBDBC21-25:

ACCBC