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Question
Why do garbage class bonds often have a negative duration?
A. The value of the returns in this bond class increases when interest rates increase.
B. It gives the rights to collateralization.
C. Bond values fall with interest rate increases.
D. It gives rights to reinvestment income on the cash flows in the CMO trust.
E. Significant risk premium required by the uninsured depositors.
Answer
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Related questions
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E. product liability and farm owner multiple peril.
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The McCarran-Ferguson Act of 1945
A. separated commercial banking from insurance activities.
B. mandated federal insurance company charters.
C. stipulated that insurance companies are to be regulated at the state level.
D. initiated a national insurance guaranty fund.
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A. the expected payment commitment on existing policy contracts.
B. a fund established and held separately from the company's other assets.
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D. the same as the endowment payout.
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A. Position trading.
B. Pure arbitrage.
C. Liquidity trading.
D. Risk arbitrage trading.
E. Program trading.
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A. has publicly-traded common stock.
B. provides equity funds to companies that already have publicly traded common stock.
C. is a subsidiary of a nonfinancial corporation.
D. provides debt funding to only to established corporations.
E. is subject to more stringent disclosure requirements than other venture capital firms.
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Which of the following would be a key area of activity for an investment bank specializing in the commercial side of the business?
A. Purchase of existing securities.
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