Fina 4400 exam - Study guides, Class notes & Summaries

FINA 4400 EXAM 1| 33 QUESTIONS WITH COMPLETE SOLUTIONS

A what rating and below is an investment considered junk? BB What treasury security has the longest maturity? Bonds What is the range of maturity length for a note? 1 to 10 years What treasury security does not have coupons? Bills If a bond sells for par, what is the coupon equal to? YTM What does a bond sell for if the coupon rate is greater than the YTM? Premium What does a bond sell for if the coupon rate is less than the YTM? Discount W...

FINA 4400 Final Exam Ch. 24 questions and answers well illustrated. A mortgage pass-through security is a bond issue backed by a group of mortgages that pays fixed semi-annual coupon payments where the principle is repaid only at maturity - correct answers.FALSE In 2008, loan sales primarily consisted of sales of distressed loans - correct answers.FALSE The buyer of a loan in a participation has a double-risk exposure: one to the borrower and one to the selling bank ...

FINA 4400 Final Exam Ch. 24 questions and answers well illustrated.