assessment 2 -3
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Questions and Answers

  1. A convertible bond will normally be issued at a

  • A. Lower yield compared to a non-convertible bond. (correct)
  • B. Higher yield compared to a non-convertible bond.
  • C. Same yield compared to a non-convertible bond.
  • D. The yield comparison is not relevant between two types of these bonds.
    1. In a mortgage pass-through securities structure,

  • A. Mortgage loans will be created.
  • B. Mortgage loans will be sold to the investors.
  • C. Securities will be created which are backed by the cash flows from mortgages. (correct)
  • D. Equity shares will be issued on a mortgage lender.
    1. In the Mortgage pass-through structure,

  • A. A bank will issue pass-through securities.
  • B. A Special Purpose Vehicle will issue pass-through securities. (correct)
  • C. The trustee will issue the pass-through securities.
    1. Mortgage pass-through securities will be serviced through

    <p>D. Cash flows collected from the assigned mortgages.</p> Signup and view all the answers

    1. The issuer of a Treasury security is

    <p>B. General Treasury of the government.</p> Signup and view all the answers

    1. Which of the following is correct.

    <p>A. In UK, Debt Management Office is the issue agent for Treasury bills.</p> Signup and view all the answers

    1. Which of the following is a UK government security

    <p>D. Index-linked gilt securities.</p> Signup and view all the answers

    1. Which of the following security will have a variable maturity value.

    <p>D. Index-linked gilt.</p> Signup and view all the answers

    1. Original Maturity periods for UK Treasury bill do not include

    <p>A. 10-days</p> Signup and view all the answers

    1. You invested in a UK Treasury bill with a maturity of 364-days. Its issue price was GBP 98.25. you held the Treasury bill until the maturity. Your effective annualized yield rate is,……..

    <p>1.78 %</p> Signup and view all the answers

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