All are true regarding a bond designated as 'bank qualified' except Is often a staple in community bank investment portfolios Gives the issuer a yield advantage Is a class of bond issued by municipal issuers Only applies if issuer exceeds $10M of issued bond in that year O Gives the purchaser/owner a tax advantage
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- Bond A is a municipal bond and Bond B is a corporate bond. If you pay a very high tax rate, which bond do you prefer? Select one: a. B b. A c. A=BRank the following municipal bonds in order from safest to riskiest: 1) tax-anticipation bonds, 2) moral obligation bonds, 3) public housing authority bonds, and 4) industrial development revenue bonds. OA) 1.2.3.4 O (B) 3.2.1.4 OIC 2,3,4,1 O ID) 2.4.3.1Which of the following statements about are true about municipal bonds? (Select all that apply: 3 of the answers below are correct.) O Municipal bonds are typically backed by a pool of residential mortgages O Intrest payments dy municipal bonds are exempt from federal income täxes and most state & local income taxes O Municipal bonds can typically be exchanged for sstock in the underlying issuer at the discretion of the bond holder. O A municipal bond sold to finance a specific revenue-generting project and backed by cash flows from that project are called "Revenue Bonds". O A municipal bond backed by the full faith & credit of the issuer is called a "General Obligtion Bond". O There is NO secondary market for municipal bonds. O municipal bonds are generally considered to be low risk because they are insured by the FDIC
- If a bond is backed by the revenue generated from a project, it is called______ Group of answer choices GO bond Revenue bond Green bond tax-supported bondIdentify investments as an investment in either debt (D) securities or equity (E) securities. Chicago municipal bondsA debenture is ________. A. the interest paid on a bond B. a type of bond that can be sold back to the issuing company whenever the bondholder wishes C. a bond with only the companys word that they will pay it back D. a bond with assets such as land to back their word that they will pay it back
- The cash interest payment a corporation makes to its bondholders is based on ________. A. the market rate times the carrying value B. the stated rate times the principal C. the stated rate times the carrying value D. the market rate times the principalWhich type of bond has interest payments that are exempt from federal income taxes? A. Corporate bonds B. Certificates of deposit C. Municipal bonds D. Treasury bondsAll else held constant, which one of the following bonds is likely to have the highest required rate of return? a. AAA-rated noncallable corporate bond with a sinking fund b. AA-rated callable corporate bond with a sinking fund c. AAA-rated callable corporate bond with a sinking fund d. High-quality municipal bond e. AA-rated callable corporate bond without a sinking fund Clear my choice
- An asset ( Set that is purchased with the expectation that it will pro or appreciate at s Tuture. Bond sit Investment 2. Hise it in stocke an organization that brings together money from various people and invests ke bonus or omer assets. Hurance ComSION le B. Deposit PSIH Market AAA e liquidity. AV B: 4. It is a form of security that indicates the holder has proportionate ownership in the issuing corporation. A. Bond C. Deposit D. Investment B. Stock 5. An income based on the outstanding principal and current interest rate. A. Active income C. Passive income B. Interest income D. Dividend income 6. It is a fixed-income instrument that signifies a loan made by an investor to a borrower (typically corporate or government). A. Bond B. Stock C. Deposit D. Investment 7. These investments are impractical to invest directly considering storage, transportation, and insurance costs involved. A. Currency C. Commodities D. Investment B. Stock 8. A risk management technique that combines a wide…Bonds are issued at a premium by a capital projects fund. The premium should bea. retained in the capital projects fund.b. credited directly to the restricted fund balance of the capital projects fund.c. transferred to the debt service funds.d. used to reduce the net cost of the project involved.§ Field: Business & Finance homework help Report Issue “Bond Risk Management” Please respond to the following: Given the Federal Reserve Board’s current and forward-looking position on interest rates, predict the level of risk associated with investing in bonds and recommend a portfolio percentage for investment in bonds for a financial institution. Provide support for your recommendation. Assess how an increase in the interest rate would change your recommendation provided above. Indicate the basis for your rationale. Please provide one citation/reference for your initial posting that is not your textbook. Please do not use Investopedia or Wikipedia.
