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Questions and Answers
What are the major classes of fixed income securities?
What are the major classes of fixed income securities?
- Stock Market and Commodity Market
- Real Estate Market and Forex Market
- Money Market and Bond Market (correct)
- Derivatives Market and Options Market
What is the definition of a bond?
What is the definition of a bond?
- A debt investment where an investor loans money to an entity for a defined period at a variable or fixed interest rate (correct)
- A share of ownership in a company
- An agreement to buy or sell a specified amount of a financial instrument
- A type of derivative security
What are examples of money market instruments?
What are examples of money market instruments?
- Options, Futures, Swaps
- Corporate bonds, Municipal bonds, Treasury notes
- Preferred stock, Common stock, Convertible bonds
- Treasury bills, Certificates of Deposit (CDs), Commercial Paper (correct)
What does yield to maturity (YTM) represent for a bond?
What does yield to maturity (YTM) represent for a bond?
What is an indenture in the context of fixed income securities?
What is an indenture in the context of fixed income securities?