All of the following statements regarding government and agency securities are true EXCEPT:A) interest paid is always subject to federal income tax. B) they are considered safer than corporate debt securities. C) they are always directly backed by the federal government. D) they are authorized by Congress.
Reggie owns a convertible bond that converts into 20 shares of common stock. The current market value of the bond was 118-½ at the close on Friday, April 1. A 30-day call is announced prior to the opening on Monday, April 4, at a price of $102. The stock is trading at $57.75. What should Reggie do?A) Sell the bond. B) Redeem the bond at the call price. C) Convert the bond into the stock. D) Hold the bond to maturity.
A characteristic not associated with a Series EE bond is:A) a fixed maturity date. B) marketability. C) a fixed rate of return. D) security of principal.
Money market instruments guaranteed by a bank that are used to provide capital for exporters to foreign countries are called:A) ADRs. B) eurodollars. C) banker's acceptances. D) foreign bills.
Your answer, banker's acceptances., was correct!.
A quote of 6.20 bid 6.18 offered would most likely be a quote on a:A) Ginnie Mae bond. B) T-bill. C) GO bond. D) T-bond.
The accreted interest income from Treasury STRIPS is:A) taxed at the state and local levels. B) taxed at all levels. C) tax free. D) taxed at the federal level.
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