固定收益证券投资：基本概念(二)及答案解析.doc

1、固定收益证券投资：基本概念(二)及答案解析(总分：50.00，做题时间：90 分钟)一、B单项选择题/B(总题数：50，分数：50.00)1.Which of the following is the appropriate redemption price when bonds are called according to the sinking fund provision? A. Special redemption price. B. Regular redemption price. C. General redemption price.（分数：1.00）A.B.C.2.Ther

2、e are several types of external credit enhancements. All of the following are examples of external credit enhancements EXCEPT: A. corporate guarantees. B. letters of credit. C. setting aside reserve funds.（分数：1.00）A.B.C.3.Which of the following is the reason why credit spreads between high quality b

3、onds and low quality bonds widen during poor economic conditions? A. indenture provisions. B. interest risk. C. default risk.（分数：1.00）A.B.C.4.Which of the following will most likely have the least impact on a corporate bond rating? The: A. issuing companys debt burden. B. issuing companys liquidity

4、provision. C. issuing companys volume of sales.（分数：1.00）A.B.C.5.Which of the following statements regarding the different theories of the term structure of interest rates is FALSE? A. The preferred habitat theory can be described as investors that prefer to stay within a particular maturity range of

5、 the yield curve regardless of yields in other maturity ranges. B. The market segmentation theory, pure expectations theory, preferred habitat theory, and liquidity preference theory are all consistent with any shape of the yield curve. C. An upward sloping yield curve can be consistent with the liq

6、uidity preference theory even with expectations of declining short term interest rates.（分数：1.00）A.B.C.6.Which of the following are the two most important tools available to the Federal Reserve? A. Changing the discount rate and changing bank reserve requirements. B. Open market operations and changi

7、ng bank reserve requirements. C. Changing the discount rate and open market operations.（分数：1.00）A.B.C.7.The structure of interest rates results from all the following EXCEPT: A. viewing each bond coupon payment as a separate zero coupon bond. B. viewing a bonds cash flows as having maturities rangin

8、g from the next coupon payment to the final payment at maturity. C. creating the yield curve by plotting term to maturity against the coupon rate.（分数：1.00）A.B.C.8.While working abroad, U. S. citizen Dirk Senik purchases a foreign bond with an annual coupon of 7.5 percent for 95.5. One year later, th

9、e exchange rate between the dollar and the foreign currency remains unchanged and he sells the bond for 97.25, resulting in a holding period return of 9.7 percent. If the foreign currency had depreciated in relation to the dollar, Seniks return would be: A. greater than 9.7 percent. B. equal to 9.7

10、percent. C. less than 9.7 percent.（分数：1.00）A.B.C.9.A domestic investor is purchasing foreign bonds. Which of the following statements regarding the exchange rate risk and price movement of the asset is most accurate? A. The depreciation of both the asset and the foreign currency benefits the domesti

11、c investor. B. The appreciation of both the asset and the foreign currency benefits the domestic investor. C. The appreciation of the asset and the depreciation of the foreign currency benefit the domestic investor.（分数：1.00）A.B.C.10.The concept that forward rates reflect investors expectations of fu

12、ture rates plus a liquidity premium to compensate them for exposure to interest rate risk is associated with which of the following explanations of the term structure of interest rates? A. Liquidity premium theory B. Segmented market theory. C. Expectations hypothesis.（分数：1.00）A.B.C.11.A downward sl

13、oping yield curve generally implies: A. interest rates are expected to increase in the future. B. longer-term bonds are riskier than short-term bonds. C. interest rates are expected to decline in the future.（分数：1.00）A.B.C.12.Fernando Golpas and Javier Solada were reviewing the financial reports of s

14、everal Latin American governments. They noticed that the central governments of many Latin American countries such as Argentina, Chile, Peru, and Ecuador had recently been issuing sovereign debt. This sparked a discussion between the two analysts about sovereign debt ratings. During their discussion

15、 they made the following statements: Golpas: The rating agencies, such as Moodys, generally assign two ratings to sovereign debt. One is a local currency debt rating and the other is a foreign currency debt rating. The reason for the two ratings is that the default frequency has been greater on loca

16、l currency denominated debt. Solada: If a central government is willing to raise taxes and control its internal financial system, it should be able to generate sufficient local currency to meet its local currency obligation. That is why the rating on local currency denominated debt is generally high

17、er than the rating on foreign currency denominated debt. Are the statements made by Golpas and Solada regarding sovereign debt ratings correct? Golpas Solada A. Correct Correct B. Incorrect Correct C. Incorrect Incorrect A. B. C. （分数：1.00）A.B.C.13.Which of the following best describes a Treasury not

18、e? Pays: A. implicit interest; is non-callable; has a 2- to 10-year maturity. B. explicit interest; is callable; has a 1- to 15-year maturity. C. explicit interest; is non-callable; has a 2- to 10-year maturity.（分数：1.00）A.B.C.14.In the context of bonds, accrued interest: A. equals interest earned fr

19、om the previous coupon to the sale date. B. covers the part of the next coupon payment not earned by seller. C. is discounted along with other cash flows to arrive at the dirty, or full price.（分数：1.00）A.B.C.15.Which of the following does NOT represent a secondary market offering? When bonds are sold

20、: A. in a Rule 144A offering. B. in an over-the-counter dealer market. C. on an electronic trading network.（分数：1.00）A.B.C.16.While serving as visiting conductor at the University of Edinburgh, U. S. Citizen William Golson purchases a 9.0 percent annual coupon bond denominated in the local currency f

21、or 93.0. One year later, before his return to the U. S. , he sells the bond for 99.5. Using a holding period return formula he remembers from his undergraduate studies, he calculates his return at 16.7 percent. On the flight home, he is seated next to Kristin Meyer, CFA. She is puzzled because she h

22、as heard that similar investments yielded negative returns over the same time period.After consulting her financial newspaper, she recalculates Golsons return at a disappointing negative 5.2 percent.Assuming Meyer is correct, which of the following statements is the most likely reason for the differ

23、ence in the calculated returns? Golson: A. forgot to include the impact of foreign currency appreciation in relation to the dollar. B. forgot to include the impact of foreign currency depreciation in relation to the dollar. C. omitted the impact of inflation.（分数：1.00）A.B.C.17.All else equal, which o

24、f the following is least likely to increase the interest rate risk of a bond? A. A longer maturity. B. Inclusion of a call feature. C. A lower coupon.（分数：1.00）A.B.C.18.Is an option-free bonds price sensitivity positively correlated with the: Bonds coupon rate Level of market interest rates A. No Yes

25、 B. No No C. Yes No A. B. C. （分数：1.00）A.B.C.19.The yield on an industrial bonds is 8.59 percent while the yield on a benchmark bond with the same maturity is 6. 83 percent. The relative yield spread is closest to; A. 1.8% B. 20.5% C. 25.8%（分数：1.00）A.B.C.20.An analyst forecasts that spot interest rat

26、es will increase more than the increase implied by the current forward interest rates. Under these circumstances: A. the analyst should establish a bearish bond portfolio. B. all bond positions earn the same return. C. the analyst should establish a bullish bond portfolio.（分数：1.00）A.B.C.21.Which of

27、the following statements regarding separate trading of registered interest and principal of securities (STRIPS) is TRUE? A 20-year Treasury bond can be used as the basis for: A. 40 coupon strips and 1 principal strip. B. 40 principal strips and 1 coupon strip. C. 41 coupon strips.（分数：1.00）A.B.C.22.W

28、hich of the following best explains the slope of the yield curve? A. The term spread between the yields of two maturities. B. The credit spread between two securities with different maturities. C. The nominal spread between two securities with different maturities.（分数：1.00）A.B.C.23.Which of the foll

29、owing entities play a critical role in the ability to create an asset backed security with a higher credit rating than the corporation? A. Rating agencies. B. Investment banks. C. Special purpose vehicles (SPVs).（分数：1.00）A.B.C.24.All else being equal, the ceiling on a floating-rate security is most

30、likely to benefit the: A. issuer if interest rates fall. B. issuer if interest rates rise. C. bondholder if interest rates rise.（分数：1.00）A.B.C.25.Which one of the following alternatives represents the correct series of payments made by a typical 6 percent U. S. Treasury note with a par value of $100

31、000 issued today with five years to maturity ? Number and size of each intermediate payment Payment made at maturity A. 9 semiannual payments of $3000 $100000 B. 4 annual payments of $6000 $106000 C. 9 semiannual payments of $3000 $103000 A. B. C. （分数：1.00）A.B.C.26.Which of the following statements

32、about debt securities is least accurate? A. Commercial paper is a short-term (less than nine months) vehicle for corporate borrowing. B. A MTN is a shelf-registered debt instrument that is continually offered to investors by an agent of the issuer and varies in maturity from nine months to over 30 y

33、ears. C. A medium-term note (MTN) differs from a corporate bond in that a MTN is sold to investors on a “firm commitment“ basis wherein the investment banker guarantees a price to the issuer.（分数：1.00）A.B.C.27.Which of the following statements is TRUE? A. When a rating agency downgrades a security, t

34、he bonds price usually falls. B. Technical default usually refers to the issuers failure to make interest or principal payments as scheduled in the indenture. C. Default risk is important because if a bond issuer defaults, the bondholder likely loses his entire investment.（分数：1.00）A.B.C.28.Which of

35、the following reasons is the best reason NOT to enhance the credit quality of an asset backed security (ABS) pool? A. Liquidity. B. Regulatory. C. Cost.（分数：1.00）A.B.C.29.If investors expect greater uncertainty in the bond markets, yon should see yield spreads between AAA and B rates bonds: A. widen.

36、 B. narrow. C. slope downward.（分数：1.00）A.B.C.30.If the issuer of a bond is in default, the bond will be trading: A. registered. B. on accrual. C. flat.（分数：1.00）A.B.C.31.Which of the following circumstances is an example of event risk? A. A currency devalues due to foreign exchange market forces. B.

37、A local government regulatory agency introduces more stringent clean-water requirements that will significantly reduce the cash flow of an area paper mill. C. The U. S. Federal Reserve unexpectedly increases interest rates by 100 basis points.（分数：1.00）A.B.C.32.Which of the following statements regar

38、ding a bond being called is TRUE? Call prices are known as regular redemption prices when bonds are called at: A. under the call provisions specified in the bond indenture. B. at a discount. C. at a premium.（分数：1.00）A.B.C.33.Which of the following yield curves represents a situation where long-term

39、rates are less than short-term rates? A. Normal yield curve. B. Inverted yield curve. C. Flat yield curve.（分数：1.00）A.B.C.34.When bonds are sold in a bought deal, the transaction takes place on the: A. primary market. B. secondary market. C. tertiary market.（分数：1.00）A.B.C.35.Which of the following st

40、atements concerning taxable bonds is TRUE? A. Corporates have the lowest yields, followed by Treasuries, then by corporates, which provide the highest returns. B. Treasuries have the lowest yields, followed by corporates, then by agencies, which provide the highest returns. C. Treasuries have the lo

41、west yields, followed by agencies, then by corporates, which provide the highest returns.（分数：1.00）A.B.C.36.If the Federal Reserve wishes to lower market interest rates without changing the discount rate, it can: A. increase bank reserve requirements. B. raise the yield on Treasury securities. C. buy

42、 Treasury securities.（分数：1.00）A.B.C.37.Kirsten Thompson, CFA candidate, is studying the relationships between a bonds coupon rate and the required market yield. One study question concerns a new-issue, 15-year, $1000 face value 6.75 percent semi-annual coupon bond priced at $1075. Which of the follo

43、wing choices correctly describes the bond and accurately represents the relationship of the bonds market yield to the coupon? A. Premium bond, required market yield is less than 6.75%. B. Premium bond, required market yield is greater than 6.75%. C. Discount bond, required market yield is less than

44、6.75%.（分数：1.00）A.B.C.38.Which of the following statements about fixed income securities is FALSE? A. The corporate bond sector is more important in the US than in Japan and Germany. B. Coupon interest and capital gains from municipal bonds are tax exempt at the federal level. C. Treasuries and agenc

45、ies are quoted in 32nds of a price point.（分数：1.00）A.B.C.39.Which of the following statements about a callable bond is TRUE? A. The call option on a bond trades separately from the bond itself. B. A bondholder usually loses if a bond is called by being forced to reinvest the proceeds at a lower inter

46、est rate. C. Callable bonds follow the standard inverse relationship between interest rates and price.（分数：1.00）A.B.C.40.A normally sloped yield curve has a: A. positive slope. B. zero slope. C. negative slope.（分数：1.00）A.B.C.41.An analyst is considering two bonds: Bond A yields 7.5% , and Bond B yiel

47、ds 7.0%. Using Bond B as the reference bond, the absolute yield spread and the yield ratio for Bond A are closest to: Spread Ratio A. -0.5% 1.07 B. -015% 0.93 C. 0.5% 1.07 A. B. C. （分数：1.00）A.B.C.42.The current coupon period for a 10-year IBM bond with face value $100000 and a 7% coupon rate is 183

48、days in length. The next coupon will be paid 85 days from todays settlement date. What is the accrued interest on this bond? A. $3748. B. $1626. C. $1874.（分数：1.00）A.B.C.43.Peter Stone is considering buying a $100 face value, semi-annual coupon bond with a quoted price of 105.19. His colleague points

49、 out that the bond is trading ex-coupon. Which of the following choices best represents what Stone will pay for the bond? A. $105.19 plus accrued interest. B. $105.19 minus accrued interest. C. $105.19.（分数：1.00）A.B.C.44.A Treasury bond due in one-year has a yield of 8.5 percent. A Treasury bond due in 5 years has a yi