|
LOS g, (Part 1): Describe the types of securities issued by municipalities in the United States.
Q1. Which of the following statements concerning municipal securities is FALSE?
A) Investors may be taxed on any capital gains on municipal securities.
B) All interest on municipal securities is tax-exempt at the federal level.
C) A moral obligation bond has no legally binding requirement to be repaid.
Q2. Which of the following statements about fixed income securities is least accurate?
A) The main innovation of CMO is that they offer stable maturities to investors.
B) Coupon interest and capital gains from municipal bonds are tax exempt at the federal level.
C) The corporate bond sector is more important in the US than in Japan and Germany.
Q3. Which of the following statements concerning municipal bonds is FALSE?
A) Before-tax yields on municipal bonds are usually lower than before-tax yields on Treasury bonds.
B) Municipal bonds have lower risk than Treasury bonds because of their lower yield.
C) The vast majority of municipal bonds sell at lower yields because their bond interest is exempt from federal income tax.
Q4. Which of the following statements about municipal bonds is least accurate?
A) Revenue bonds have lower yields than general obligation bonds because there are more revenue bands and they have higher liquidity.
B) A municipal bond guarantee is a form of insurance provided by a third party other than the issuer.
C) Bonds with municipal bond guarantees are more liquid in the secondary market and generally have lower required yields.
| 
发表于 2009-3-2 16:35
| 
