Money Market and Bonds Lecture Learning Objectives
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Questions and Answers

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?

  • 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?

  • 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?

<p>$YTM$ represents the total return anticipated on the bond if it is held until it matures. (D)</p> Signup and view all the answers

What is an indenture in the context of fixed income securities?

<p>A formal debt agreement that describes the terms of the bond. (D)</p> Signup and view all the answers

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