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8 Cards in this Set
- Front
- Back
Which of the rating agencies listed below would most likely rate a municipal revenue anticipation note for credit risk?
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Moody's
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Declining rate of inflation would lead to
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I higher prices and lowering bond yields
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Market uncertainty regarding future interest-rate levels would indicate that the yield curve should be
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Flat
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A increasing market rate of interest would lead to:
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Lower bond prices and higher bond yields
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When it is expected that a recession would occur
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They yield spread between corporate and government bonds will widen
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True or false step down certificate of deposit the interest payment will be reduced and the principal payment is fixed
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True
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T or F bonds are typically called when interest-rate have fallen allowing the issue to refinance at lower interest cost because of the call risk the risk that a high yield issue can be called away if interest-rate dropped
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True
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Which CMO trench is least susceptible to interest-rate risk
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Floating-rate tranche
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