17. Which of the following statements is true about bonds in the US? A) State and local governments have no default risk on their bonds. B) Bonds issued by the state and local governments are referred to as municipal bonds. C) All bonds issued by state, local, and federal governments are exempt from federal income tax. D) Local government bond coupons are usually higher than Treasury bonds coupons. 18. Under normal economic conditions, the yield curve is A) gently upward sloping. B) mound shaped. C) flats. D) bowl-shaped. 19. The main assumption in the segmented market theory is that bonds have different maturities A) are not substitutes for each other. B) is a perfect substitution. C) is substitutes only if the investor is given a premium incentive. D) is substitutes but not a perfect substitution.

An investor has two alternatives: AAA-rated corporate bond or Turkish Government Treasury bond. But the investor is not sure what rate of interest these two bonds should pay. Assume that the real risk-free rate of interest is 1.5%; inflation is expected to be 2.5%; the maturity risk premium is 3.5%; and, the default risk premium for AAA rated corporate bonds is 5.5%.   a) What is the "Rate of interest for the AAA-rated corporate bond" ?   b) What is the "Rate of interest for the Turkish Government Treasury bond"?

In order to reduce inflation, the Federal reserve may choose to sell Treasury bonds in open market operations. Yes O No

Briefly describe the differences between inflation and Deflation. Briefly describe what Municipal Bonds are as compared to General Obligation Bonds.

am. 124.

These are all types of corporate bonds: Junk, convertible, and period bonds. Convertible, putable, and zero-coupon bonds. Convertible, callable, and municipal bonds. Callable, straight, and private bonds.   The contract, or stated interest rate of a bond is: The rate at which the issuer is paying interest on the bond. The face value of the bond. The interest rate adjusted for the Feds latest prime rate. The interest rate the borrower is willing to accept.   please give me one answer correct answer and explain for both with correct choice

Two depository institutions have composite CAMELS ratings of 1 or 2 and are "well capitalized." Thus, each institution falls into the FDIC Risk Category I deposit insurance assessment scheme. Further, the institutions have the following financial ratios and CAMELS ratings: Use Table 13–11.    Institution A Institution B Tier I leverage ratio (%)   8.80     7.93   Net income before taxes/risk-weighted assets (%)   2.33     1.95   Nonperforming loans and leases/gross assets (%)   0.53     0.68   Other real estate owned/gross assets (%)   0.15     0.45   Brokered deposits/total assets (%)   3.75     1.05   One year asset growth   7.35     4.65                 Loans as a Percentage of Total Assets:             Construction & Development   0.00     0.00   Commercial & Industrial   18.36     11.40   Leases   2.05     1.75   Other Consumer   18.85     18.55   Loans to Foreign Government   0.30     0.30   Real Estate Loans Residual   0.00     0.00…

An investor seeking relatively low default risk investments combined with some type of favorable tax treatment and inflation protection should consider which of the following?(1) Insured municipal bonds. (2) TIPS. (3) Zero coupon Treasury bonds. (4) Series I savings bonds. (5) Series HH savings bonds. a. 1, 2 and 3. b. 1, 2 and 4. c. 2 and 4. d. 2, 4 and 5.