322-19

Financial corporations have issued 95% of medium-term notes outstanding.  

A) True  
B) False

Between 2001 and 2009, the yield spread between corporate bonds and the 10 year U.S. Treasury note decreased from 200 basis points to 20 basis points.  

A) True  
B) False

The revisions in the SEC's Rule 144A have allowed investment banks to enter the private placement market to provide underwriting services.  

A) True  
B) False

Floating-rate bonds have their annual promised interest rate tied to inflation.  

A) True  
B) False

In the past 15 years insurance companies have slowed their purchases of privately placed securities significantly due to public pressure on life insurers to strengthen their balance sheets.  

A) True  
B) False

In August 2008, the average maturity of commercial and industrial loans with maturities exceeding one year averaged:  

A) 4 years.  
B) 3 years.  
C) 5 1/2 years.  
D) 7 years.  
E) none of the above

In 2009, the largest investor group in corporate and foreign bonds was foreign investors with investments totaling nearly:  

A) $890 million.  
B) $1.5 trillion.  
C) $2.4 trillion.  
D) $3.8 trillion.  
E) none of the above

For firms in the highest tax bracket, the marginal tax rate is currently:  

A) 28%.  
B) 32%.  
C) 35%.  
D) 38%.  
E) none of the above

Whether or not the marketplace perceives a bond issue to be positive or negative depends on the perceived motivation of the issue. This is sometimes referred to as a marketplace:  

A) price.  
B) feature.  
C) signal.  
D) all of the above  
E) none of the above

Between 1995 and 2009, the stock of bonds outstanding issued by U.S. financial companies more than quadrupled from $2.5 trillion to over:  

A) $8.2 trillion.  
B) $9 trillion.  
C) $11.6 trillion.  
D) $7.5 trillion.  
E) none of the above