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The interest rate charged by banks with excess reserves at a Federal Reserve Bank to banks needing overnight loans to meet reserve requirements is called the __________.

You own a semi-annual bond that will mature in 8 years, but is callable in three years with a penalty of $50.  The coupon rate is 5%, and it has a face value of $1,000.  If it is currently selling for $1,085, what is the yield to call on this bond?

Formulas for Exam One   Forward Spot Rate = (1+YTMn)n /(1+YTMn-1)n-1 -1   NAV = (MVassets – Liabilities) / Shares Out   Bond Price = PMT1/(1+YTM)1 + PMT2/(1+YTM)2 +…..PMTn/(1+YTM)n + FV/(1+YTM)n   ΔP/P = -D[ΔY/(1+Y)]   Duration of Perpetuity = (1+Y)/Y   Current Margin = (MV – amount borrowed) / MV   MC = $borrowed / [(1 – Margin) X #Shares]   Short Margin = (Initial cash – MV of Shares) / MV of shares   Short MC = Initial cash position / [(1+Margin) X #Shares]

You are the manager of a fixed income pension fund.  You currently expect that interest rates are going to increase significantly over the next year.  Using the concept of duration, what types of bonds should you begin to buy?

You short-sell 200 shares of Tuckerton Trading Co., now selling for $52.50 per share.  You also place a stop-buy order at $60. What is your maximum possible loss?

______________ are the least organized markets.

Under firm commitment underwriting the ______ assumes the full risk that the shares cannot be sold to the public at the stipulated offering price.

Yields on corporate bonds are typically ___________ yields on municipal bonds of similar risk and time to maturity.

According to Plato, there are two parts of the soul. 

According to Thomas Hobbes, humans are born good and the “State of Nature” is good. Society though corrupts.