CPCU 410 Module 10 Test Bank

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1. Which one of the following statements is correct regarding Eurobonds and foreign bonds?

2. Which of the following statements is correct regarding long-term debt instruments?

3. Which one of the following is a characteristic of a Treasury bill?

4. Which one of the following statements is correct regarding debt issued by the federal government?

5. Which one of the following statements is correct regarding long-term debt securities?

6. All of the following statements are correct regarding long-term debt instruments, EXCEPT:

7. Which one of the following statements is correct regarding Eurobonds?

8. John's federal marginal tax rate is 35%. He is considering investing in a tax-free bond issued in his state of residence, which yields 4%. What is the taxable equivalent yield of this bond?

9. A contract between an issuer and purchaser of a bond that includes the principal, maturity date, and interest rate is referred to as a(n):

10. A credit card company sold its receivables to David for cash. The interest and principal repayments on the credit cards will be passed directly to David after passing through the credit card company. David has purchased a(n):