2022年2022年金融市场与机构 .pdf

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1、Chapter 10The Bond Market Multiple Choice Questions 1. Compared to money market securities, capital market securities have (a) more liquidity. (b) longer maturities. (c) lower yields. (d) less risk. Answer: B 2. (I) Securities that have an original maturity greater than one year are traded in capita

2、l markets. (II) The best known capital market securities are stocks and bonds. (a) (I) is true, (II) false. (b) (I) is false, (II) true. (c) Both are true. (d) Both are false. Answer: C 3. (I) Securities that have an original maturity greater than one year are traded in money markets. (II) The best

3、known money market securities are stocks and bonds. (a) (I) is true, (II) false. (b) (I) is false, (II) true. (c) Both are true. (d) Both are false. Answer: D 4. (I) Firms and individuals use the capital markets for long-term investments. (II) The capital markets provide an alternative to investment

4、 in assets such as real estate and gold. (a) (I) is true, (II) false. (b) (I) is false, (II) true. (c) Both are true. (d) Both are false. Answer: C 名师资料总结 - - -精品资料欢迎下载 - - - - - - - - - - - - - - - - - - 名师精心整理 - - - - - - - 第 1 页，共 14 页 - - - - - - - - - Chapter 10 The Bond Market 123 5. The prima

5、ry reason that individuals and firms choose to borrow long-term is to reduce the risk that interest rates will _ before they pay off their debt. (a) rise (b) fall (c) become more volatile (d) become more stable Answer: A 6. A firm that chooses to finance a new plant by issuing money market securitie

6、s (a) must incur the cost of issuing new securities to roll over its debt. (b) runs the risk of having to pay higher interest rates when it rolls over its debt. (c) incurs both the cost of reissuing securities and the risk of having to pay higher interest rates on the new debt. (d) is more likely to

7、 profit if interest rates rise while the plant is being constructed. Answer: C 7. The primary reason that individuals and firms choose to borrow long-term is to (a) reduce the risk that interest rates will fall before they pay off their debt. (b) reduce the risk that interest rates will rise before

8、they pay off their debt. (c) reduce monthly interest payments, as interest rates tend to be higher on short-term than long-term debt instruments. (d) reduce total interest payments over the life of the debt. Answer: B 8. A firm will borrow long-term (a) if the extra interest cost of borrowing long-t

9、erm is less than the expected cost of rising interest rates before it retires its debt. (b) if the extra interest cost of borrowing short-term due to rising interest rates does not exceed the expected premium that is paid for borrowing long term. (c) if short-term interest rates are expected to decl

10、ine during the term of the debt. (d) if long-term interest rates are expected to decline during the term of the debt. Answer: A 9. The primary issuers of capital market securities include (a) the federal and local governments. (b) the federal and local governments, and corporations. (c) the federal

11、and local governments, corporations, and financial institutions. (d) local governments and corporations. Answer: B 10. Governments never issue stock because (a) they cannot sell ownership claims. (b) the Constitution expressly forbids it. (c) both (a) and (b) of the above. (d) neither (a) nor (b) of

12、 the above. Answer: A 名师资料总结 - - -精品资料欢迎下载 - - - - - - - - - - - - - - - - - - 名师精心整理 - - - - - - - 第 2 页，共 14 页 - - - - - - - - - 124 Mishkin/Eakins ? Financial Markets and Institutions, Fifth Edition 11. (I) The primary issuers of capital market securities are federal and local governments, and co

13、rporations. (II) Governments never issue stock because they cannot sell ownership claims. (a) (I) is true, (II) false. (b) (I) is false, (II) true. (c) Both are true. (d) Both are false. Answer: C 12. (I) The primary issuers of capital market securities are financial institutions. (II) The largest p

14、urchasers of capital market securities are corporations. (a) (I) is true, (II) false. (b) (I) is false, (II) true. (c) Both are true. (d) Both are false. Answer: D 13. The distribution of a firms capital between debt and equity is its(a) leverage ratio. (b) liability structure (c) acid ratio. (d) ca

15、pital structure. Answer: D 14. The largest purchasers of capital market securities are (a) households. (b) corporations (c) governments. (d) central banks. Answer: A 15. Individuals and households frequently purchase capital market securities through financial institutions such as (a) mutual funds.

16、(b) pension funds. (c) money market mutual funds. (d) all of the above. (e) only (a) and (b) of the above. Answer: E 16. (I) There are two types of exchanges in the secondary market for capital securities: organized exchanges and over-the-counter exchanges. (II) When firms sell securities for the ve

17、ry first time, the issue is an initial public offering. (a) (I) is true, (II) false. (b) (I) is false, (II) true. (c) Both are true. (d) Both are false. 名师资料总结 - - -精品资料欢迎下载 - - - - - - - - - - - - - - - - - - 名师精心整理 - - - - - - - 第 3 页，共 14 页 - - - - - - - - - Chapter 10 The Bond Market 125 Answer:

18、 C 名师资料总结 - - -精品资料欢迎下载 - - - - - - - - - - - - - - - - - - 名师精心整理 - - - - - - - 第 4 页，共 14 页 - - - - - - - - - 126 Mishkin/Eakins ? Financial Markets and Institutions, Fifth Edition 17. (I) Capital market securities fall into two categories: bonds and stocks. (II) Long-term bonds include government

19、 bonds and long-term notes, municipal bonds, and corporate bonds. (a) (I) is true, (II) false. (b) (I) is false, (II) true. (c) Both are true. (d) Both are false. Answer: B 18. The _ value of a bond is the amount that the issuer must pay at maturity. (a) market (b) present (c) discounted (d) face An

20、swer: D 19. The _ rate is the rate of interest that the issuer must pay. (a) market (b) coupon (c) discount (d) funds Answer: B 20. (I) The coupon rate is the rate of interest that the issuer of the bond must pay. (II) The coupon rate is usually fixed for the duration of the bond and does not fluctu

21、ate with market interest rates. (a) (I) is true, (II) false. (b) (I) is false, (II) true. (c) Both are true. (d) Both are false. Answer: C 21. (I) The coupon rate is the rate of interest that the issuer of the bond must pay. (II) The coupon rate on old bonds fluctuates with market interest rates so

22、they will remain attractive to investors. (a) (I) is true, (II) false. (b) (I) is false, (II) true. (c) Both are true. (d) Both are false. Answer: A 22. Treasury bonds are subject to _ risk but are free of _ risk. (a) default; interest-rate (b) default; underwriting (c) interest-rate; default (d) in

23、terest-rate; underwriting Answer: C 名师资料总结 - - -精品资料欢迎下载 - - - - - - - - - - - - - - - - - - 名师精心整理 - - - - - - - 第 5 页，共 14 页 - - - - - - - - - Chapter 10 The Bond Market 127 23. The prices of Treasury notes, bonds, and bills are quoted (a) as a percentage of the coupon rate. (b) as a percentage of

24、 the previous days closing value.(c) as a percentage of $100 face value. (d) as a multiple of the annual interest paid. Answer: C 24. The security with the longest maturity is a Treasury (a) note. (b) bond. (c) acceptance. (d) bill. Answer: B 25. (I) To sell an old bond when interest rates have rise

25、n, the holder will have to discount the bond until the yield to the buyer is the same as the market rate. (II) The risk that the value of a bond will fall when market interest rates rise is called interest-rate risk. (a) (I) is true, (II) false. (b) (I) is false, (II) true. (c) Both are true. (d) Bo

26、th are false. Answer: C 26. To sell an old bond when interest rates have _, the holder will have to _ the price of the bond until the yield to the buyer is the same as the market rate. (a) risen; lower (b) risen; raise (c) fallen; lower (d) risen; inflate Answer: A 27. Most of the time, the interest

27、 rate on Treasury notes and bonds is _ that on money market securities because of _ risk. (a) above; interest-rate (b) above; default (c) below; interest-rate (d) below; default Answer: A 28. (I) In most years the rate of return on short-term Treasury bills is below that on the 20-year Treasury bond

28、. (II) Interest rates on Treasury bills are more volatile than rates on long-term Treasury securities. (a) (I) is true, (II) false. (b) (I) is false, (II) true. (c) Both are true. (d) Both are false. Answer: C 名师资料总结 - - -精品资料欢迎下载 - - - - - - - - - - - - - - - - - - 名师精心整理 - - - - - - - 第 6 页，共 14 页

29、 - - - - - - - - - 128 Mishkin/Eakins ? Financial Markets and Institutions, Fifth Edition 29. (I) Because interest rates on Treasury bills are more volatile than rates on long-term securities, the return on short-term Treasury securities is usually above that on longer-term Treasury securities. (II)

30、 A Treasury STRIP separates the periodic interest payments from the final principal repayment. (a) (I) is true, (II) false. (b) (I) is false, (II) true. (c) Both are true. (d) Both are false. Answer: B 30. Which of the following statements about Treasury inflation-indexed bonds is not true? (a) The

31、principal amount used to compute the interest payment varies with the consumer price index. (b) The interest payment rises when inflation occurs. (c) The interest rate rises when inflation occurs. (d) At maturity the securities pay the greater of face-value or inflation-adjusted principal. Answer: C

32、 31. The interest rates on government agency bonds are (a) almost identical to those available on Treasury securities since it is unlikely that the federal government would permit its agencies to default on their obligations. (b) significantly higher than those available on Treasury securities due t

33、o their low liquidity. (c) significantly lower than those available on Treasury securities because agency interest payments are tax exempt. (d) significantly lower than those available on Treasury securities because the interest-rate risk on agency securities is lower than that on Treasury securitie

34、s. Answer: B 32. (I) Municipal bonds that are issued to pay for essential public projects are exempt from federal taxation. (II) General obligation bonds do not have specific assets pledged as security or a specific source of revenue allocated for their repayment. (a) (I) is true, (II) false. (b) (I

35、) is false, (II) true. (c) Both are true. (d) Both are false. Answer: C 33. (I) Most corporate bonds have a face value of $1000, pay interest semi-annually, and can be redeemed anytime the issuer wishes. (II) Registered bonds have now been largely replaced by bearer bonds, which do not have coupons.

36、 (a) (I) is true, (II) false. (b) (I) is false, (II) true. (c) Both are true. (d) Both are false. Answer: A 名师资料总结 - - -精品资料欢迎下载 - - - - - - - - - - - - - - - - - - 名师精心整理 - - - - - - - 第 7 页，共 14 页 - - - - - - - - - Chapter 10 The Bond Market 129 34. The bond contract that states the lenders rights

37、 and privileges and the borrowers obligations is called the (a) bond syndicate. (b) restrictive covenant. (c) bond covenant. (d) bond indenture. Answer: D 35. Policies that limit the discretion o f managers as a way of protecting bondholders interests are called(a) restrictive covenants. (b) debentu

38、res. (c) sinking funds. (d) bond indentures. Answer: A 36. Typically, the interest rate on corporate bonds will be _ the more restrictions are placed on management through restrictive covenants, because _. (a) higher; corporate earnings will be limited by the restrictions (b) higher; the bonds will

39、be considered safer by bondholders (c) lower; the bonds will be considered safer by buyers (d) lower; corporate earnings will be higher with more restrictions in place Answer: C 37. Restrictive covenants can (a) limit the amount of dividends the firm can pay. (b) limit the ability of the firm to iss

40、ue additional debt. (c) restrict the ability of the firm to enter into a merger agreement. (d) do all of the above. (e) do only (a) and (b) of the above. Answer: D 38. (I) Restrictive covenants often limit the amount of dividends that firms can pay the stockholders. (II) Most corporate indentures in

41、clude a call provision, which states that the issuer has the right to force the holder to sell the bond back. (a) (I) is true, (II) false. (b) (I) is false, (II) true. (c) Both are true. (d) Both are false. Answer: C 39. Call provisions will be exercised when interest rates _ and bond values _. (a)

42、rise; rise (b) fall; rise (c) rise; fall (d) fall; fall Answer: B 名师资料总结 - - -精品资料欢迎下载 - - - - - - - - - - - - - - - - - - 名师精心整理 - - - - - - - 第 8 页，共 14 页 - - - - - - - - - 130 Mishkin/Eakins ? Financial Markets and Institutions, Fifth Edition 40. A requirement in the bond indenture that the firm

43、pay off a portion of the bond issue each year is called (a) a sinking fund. (b) a call provision. (c) a restrictive covenant. (d) a shelf registration. Answer: A 41. (I) Callable bonds must have a higher yield than comparable noncallable bonds. (II) Convertible bonds are attractive to bondholders an

44、d sell for a higher price than comparable nonconvertible bonds. (a) (I) is true, (II) false. (b) (I) is false, (II) true. (c) Both are true. (d) Both are false. Answer: C 42. Long-term unsecured bonds that are backed only by the general creditworthiness of the issuer are called (a) junk bonds. (b) c

45、allable bonds. (c) convertible bonds. (d) debentures. Answer: D 43. A secured bond is backed by (a) the general creditworthiness of the borrower. (b) an insurance companys financial guarantee.(c) the expected future earnings of the borrower. (d) specific collateral. Answer: D 44. Financial guarantee

46、s (a) are insurance policies to back bond issues. (b) are purchased by financially weaker security issuers. (c) lower the risk of the bonds covered by the guarantee. (d) do all of the above. (e) do only (a) and (b) of the above. Answer: D 45. Corporate bonds are less risky if they are _ bonds and mu

47、nicipal bonds are less risky if they are _ bonds. (a) secured; revenue (b) secured; general obligation (c) unsecured; revenue (d) unsecured; general obligation Answer: B 名师资料总结 - - -精品资料欢迎下载 - - - - - - - - - - - - - - - - - - 名师精心整理 - - - - - - - 第 9 页，共 14 页 - - - - - - - - - Chapter 10 The Bond M

48、arket 131 46. Which of the following are true for the current yield? (a) The current yield is defined as the yearly coupon payment divided by the price of the security. (b) The formula for the current yield is identical to the formula describing the yield to maturity for a discount bond. (c) The cur

49、rent yield is always a poor approximation for the yield to maturity. (d) All of the above are true. (e) Only (a) and (b) of the above are true. Answer: A 47. The nearer a bonds price is to its par value and the longer the maturity of the bond the more closely _ approximates _ (a) current yield; yiel

50、d to maturity. (b) current yield; coupon rate. (c) yield to maturity; current yield. (d) yield to maturity; coupon rate. Answer: A 48. Which of the following are true for the current yield? (a) The current yield is defined as the yearly coupon payment divided by the price of the security. (b) The cu