Reading 40: Fixed-Income Markets: Issuance, Trading, and Funding

Which of the following bonds is most likely considered an investment grade bond?

Which securities are classified as money market securities?

A bond issued by a Chinese firm, denominated in yuan, and traded in markets outside of Japan and China is most accurately described as a:

In a primary market transaction, which offering method involves the investment bank purchasing the entire bond issue from the issuer?

Trading on a 'when issued' basis occurs in which market?

The settlement cycle for corporate bonds is typically:

Sovereign bonds with the highest credit ratings are usually backed by:

Which type of bond is issued by entities such as the World Bank or the IMF?

A loan funded by a group of banks rather than a single bank is called a:

In the United States, commercial paper typically has a maturity of:

The risk that a company will be unable to sell new commercial paper to replace maturing paper is known as:

Calculate the price of a 240-day commercial paper with a discount yield of 1.35 percent and a face value of 100.

Medium-term notes (MTNs) are best described as:

A structured financial instrument that pays a return based on a credit event, such as a downgrade or default, is known as a:

Which of the following is a yield enhancement instrument?

A structured security combining a zero-coupon bond and a call option on a stock index is most likely a:

For a floating-rate note, the coupon payments are typically based on:

An inverse floater has a coupon rate that:

A deleveraged inverse floater has a coupon leverage multiplier:

Banks often borrow excess reserves from other banks in the:

Negotiable certificates of deposit (CDs) are typically:

A repurchase agreement where the borrower sells a security and agrees to buy it back at a higher price is effectively a:

If a bond is sold for 940,000 and repurchased for 947,050 after 90 days, the repo rate is closest to:

The 'repo margin' or 'haircut' is defined as:

Which factor would result in a lower repo rate?

A 'reverse repo' refers to:

A bond issued by a local government entity, such as a city or county, is classified as a:

The spread between bid and ask prices is typically narrower for:

On-the-run bonds are:

A 'shelf registration' allows an issuer to:

In an underwritten offering, the risk that the entire issue is not sold is borne by the:

LIBOR is being replaced by market-determined rates such as:

A serial bond issue is best described as an issue where:

Most secondary market trading of bonds takes place in:

Which of the following is an example of an internal credit enhancement?

Typically, the settlement for government bonds occurs on:

A 'tender offer' in the bond market refers to:

Which of the following bonds are considered essentially free of default risk?

Agency bonds in the United States are issued by:

If a repo margin is 5 percent, and the loan amount is 1,000,000, the collateral value is closest to:

A bridge financing loan is best described as:

Commercial paper issuers typically maintain backup lines of credit to:

A guarantee certificate is an example of a:

Customer deposits at a bank are a form of:

Which factor would increase the repo margin (haircut)?

The reference rate for floating-rate bonds should match the bond's:

A 'best efforts' offering implies that the investment bank:

Which of the following is true regarding 'benchmark bonds'?

In a leveraged inverse floater, the change in the coupon rate is:

Central bank funds rates refer to rates for: