1. When the coupon payments and principal from a treasury bond are all registered and traded separately, they are called ________.
CFNs
FRNs
STRIPs
TIPS
2. _____ is when dealers buy up all of the components of a STRIP and create a new bond.
unstripping
reconstitution
repurchase agreements
remediation
3. From an investor's perspective, the attractiveness of municipal securities is due to their ________.
tax treatment at the federal income tax level.
exemption from capital gains at the state income tax level.
exemption from capital gains federal income tax level.
All of these
4. Which of the following bonds would have the highest after-tax yield for an investor in the 25% marginal tax bracket?
Taxable municipal bond with a 3.5% yield.
Tax exempt municipal bond with a 3% yield.
Tax exempt municipal bond with a 3.5% yield.
T-Bond with a 4% yield.
5. For common stock investors, the return realized by holding this investment depends on ________.
dividend payments
increases in the price of the stock
decreases in the price of the stock
All of these