Fixed Income Test 1 (Answered) 2024

Fixed Income Test 1 (Answered) 2024 The US debt market is larger than the US equity market? T/F True All of the following are differentiating factors of fixed income securities versus equity securities except for: Fixed claim Higher priority on cash flows Tax deductibility by issuer Infinite Life Infinite Life A bond's CUSIP is defined as: A) A unique nine digit number to identify individual bonds B) A number assigned by the SEC to all registered bond offerings Only A is correct All of the following are differences in how bond trade versus equities except: Equities generally trade at a wider spread differential Bonds trade in a more opaque market (less pricing data readily available) Minimum trading sizes for equities are smaller Equities tend to more often be traded on electronic exchanges Equities generally trade at a wider spread differential In terms of returns, bond investors who buy and intend to hold a bond to maturity are primarily focused: A) Price appreciation B) Principal return and income yield Only A is correct Only B is correct A and B are both correct Neither A nor B are correct Only B is correct All of the following are examples of Fixed Income asset classes except: Convertibles High Yield Interest Rate Options RMBS Interest Rate Options A bond's indenture: is the same as a debenture.