1) If you had spend in the diversified portfolio of long term junk bonds in at the ending of 2007 and held this portfolio until the end of 2012 you would have been economically bankrupt. (if bankrupt can be described as the return of negative 4% per year).
True
False
2) Prices of risky corporate bonds usually fell comparative to 10 year Treasury note between October 200 and June 2006.
True
False
3) The investor who purchases and sells government notes each day is guaranteed of assured return as treasury notes have no default risk and coupon is fixed.
True
False
3) Write down the stated objectives of Federal Reserve System? Write down the metrics youwould use to find out success, or failure of our central bank?
Do you think that the Fed must continue to be “independent” or must it be more closely controlled by Congress and the Administration?
Requirements
Min Pages: 2
Max Pages: 3