题目内容

The liquidity premium can be best described as compensation to investors for the:

A. Risk of loss relative to an investments fair value if the investment needs to be converted to cash quickly.
B. Increased sensitivity of the market value of debt to a change in market interest rates as maturity is extended.
C. Possibility that the borrower will fail to make a promised payment at the contracted time and in the contracted amount.

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A corporation issues 5-year fixed-rate bonds. Its treasurer expects interest rates to decline for all maturities for at least the next year. She enters into a 1-year agreement with a bank to receive q

A. swap
B. Futures contract.
C. Forward contract.

Jackson Barnes, CFA, works for an insurance company providing financial planning services to clients for a fee. Barnes has developed a network of specialists, including accountants, lawyers, and broke

A. Have his independent contractors approved by the insurance company
B. List the consideration he receives from the specialists on monthly client invoices
C. Inform potential clients about his arrangement with the contractors before they agree to hire him

The most likely impact of adding commodities to a portfolio of equities and bonds is to:

A. Increase risk
B. Enhance return.
C. Reduce exposure to inflation.

A company has initiated the process of selling unproductive land representing 5% of its total assets and using the proceeds to buy back its common shares. Holding other factors constant, these actions

A. Higher return on equity
B. Higher operating margin
C. Lower sustainable growth

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