Securities that have an original maturity greater than one year are traded in ca
ID: 2754838 • Letter: S
Question
Securities that have an original maturity greater than one year are traded in capital markets. The best Known capital market securities are stocks and bonds. (I) is true, (II) false. (I) is false, (II) true. Both are true. Both are false. The primary isomers of capital market securities include The federal and local governments. The federal and local governments and cooperations. The federal and local governments cooperations, and finiancial institutions. Local governments and cooperations. The coupon rate is the rate of inerest that the Issuer of the bond must pay. The coupon rate on old bonds fluctuates with market interest rates so they will remain attractive to investors. (I) is true, (II) false. (I) is false, (II) true. Both are true. Both are false. The security with the longest maturity is a Treasury note. bond. acceptance. bill. The bond contract that states the lender's rights and privileges and the borrower's obligation is called the Bond synicate. restrictive convenant. bond convenant. bond indenture.Explanation / Answer
Ans 1) Option C is correct - (I) Securities with maturity greater than 1 year are traded in Capital Market. The one with maturity less than a year are traded in money market . (II) And Both Stocks and Bonds are the best known Capital market securities Ans 2) Option C is correct - The primary issuer of capital market includes the federal and local governments, corporations, and financial institutions Ans 3) Option A is correct - Coupon rate is the rate of interest that the issuer is bound to pay to the investor. The issuer is obliged to pay the coupon rate irrespective of what is there in the market. Ans 4) Option B is correct - BOND are the longest maturity security issued by the Treasury. Ans 5) Option D is correct - It’s the Bond indentures which states the lender's rights and privileges and the borrower's obligation