FIN 355 Quiz 3 ANSWER
- From Business, General Business
- NUMBER1TUTOR
- Rating : 88
- Grade : A+
- Questions : 0
- Solutions : 0
- Blog : 3
- Earned : $14856.59
Question 1
2 out of 2 points
Correct
Bonds issued by state and local governments to fund private projects are called
Answer
Selected Answer:
industrial revenue bonds
Correct Answer:
industrial revenue bonds
Question 2
2 out of 2 points
Correct
You assess that one-year and three-year zero-coupon bonds are priced correctly but a two-year zero-coupon bond is overpriced. To take advantage of this mispricing, you should
Answer
Selected Answer:
sell short the two-year bond and buy one-year and three-year-bonds
Correct Answer:
sell short the two-year bond and buy one-year and three-year-bonds
Question 3
2 out of 2 points
Correct
A bond that has no specific collateral to support it is
Answer
Selected Answer:
a debenture