1. A widening of default risk premiums is considered a positive sign for future economic prospects.
True/False
2. A convertible US$ bond could not have a yield greater than a US government bond with the same maturity.
True/False
3. The yield on overnight repurchase agreements (repos) is generally lower than the corresponding fed funds rate.
True/False
4. Which of the following bond options would increase the bond’s required yield? I. callable, II. convertible, III. putable
a. I only
b. II only
c. I and III only
d. II and III only
e. all of the above
f. none of the above
5. A ______ is a short-term loan secured by a money market instrument.
a. commercial paper
b. fed funds
c. certificate of deposit
d. repurchase agreement
e. all of the above
f. none of the above