Respond to the following five questions. Write your responses in a Word document, and number them 1–5.
1. Categorize each of the following transactions as taking place in either the primary or secondary market:
· Supercorp issues $180 million of new common stock.
· HiTech, Inc. issues $30 million of common stock in an IPO.
· Megaorg sells $10 million of HiTech preferred stock from its marketable securities portfolio.
· The XYA Fund buys $220 million of previously issued Supercorp bonds.
· A. B. Corporation sells $15 million of XYZ common stock.
2. Identify whether the following financial instruments are capital market securities or money market securities:
· U.S. Treasury bills.
· U.S. Treasury notes.
· U.S. Treasury bonds.
· Mortgages.
· Federal funds.
· Negotiable certificates of deposit.
· Common stock.
· State and government bonds.
· Corporate bonds.
3. Identify the different types of financial institutions. What are the main services each of these financial institutions offers?
4. Define the six factors that determine the nominal interest rate on a security.
5. Define the concept of term structure of interest rates. What are three theories that explain the future yield curve of interest rates?
Use references to support your answers as needed. Be sure to cite all references using correct APA style. Your responses should be free of grammar and spelling errors, demonstrating strong written communication skills.
Assessment 2
Respond to the following five q
uestions. Write your responses in a Word
document, and number them 1
–
5.
1.
Categorize each of the following transactions as taking place in either the primary or
secondary market:
·
Supercorp issues $180 million of new common stock.
·
HiTech, Inc. issues $30 mill
ion of common stock in an IPO.
·
Megaorg sells $10 million of HiTech preferred stock from its marketable
securities portfolio.
·
The XYA Fund buys $220 million of previously issued Supercorp bonds.
·
A. B. Corporation sells $15 million of XYZ common stock.
2.
Ident
ify whether the following financial instruments are capital market securities or
money market securities:
·
U.S. Treasury bills.
·
U.S. Treasury notes.
·
U.S. Treasury bonds.
·
Mortgages.
·
Federal funds.
·
Negotiable certificates of deposit.
·
Common stock.
·
State and government bonds.
·
Corporate bonds.
3.
Identify the different types of financial institutions. What are the main services each
of these financial institutions offers?
4.
Define the six factors that determine the nominal interest rate on a security.
5.
Defi
ne the concept of term structure of interest rates. What are three theories that
explain the future yield curve of interest rates?
Use references to support your answers as needed. Be sure to cite all references
using correct APA style. Your responses shou
ld be free of grammar and spelling
errors, demonstrating strong written communication skills.
Assessment 2
Respond to the following five questions. Write your responses in a Word
document, and number them 1–5.
1. Categorize each of the following transactions as taking place in either the primary or
secondary market:
Supercorp issues $180 million of new common stock.
HiTech, Inc. issues $30 million of common stock in an IPO.
Megaorg sells $10 million of HiTech preferred stock from its marketable
securities portfolio.
The XYA Fund buys $220 million of previously issued Supercorp bonds.
A. B. Corporation sells $15 million of XYZ common stock.
2. Identify whether the following financial instruments are capital market securities or
money market securities:
U.S. Treasury bills.
U.S. Treasury notes.
U.S. Treasury bonds.
Mortgages.
Federal funds.
Negotiable certificates of deposit.
Common stock.
State and government bonds.
Corporate bonds.
3. Identify the different types of financial institutions. What are the main services each
of these financial institutions offers?
4. Define the six factors that determine the nominal interest rate on a security.
5. Define the concept of term structure of interest rates. What are three theories that
explain the future yield curve of interest rates?
Use references to support your answers as needed. Be sure to cite all references
using correct APA style. Your responses should be free of grammar and spelling
errors, demonstrating strong written communication skills.
Hunttizzle
assessment_2_instructions.docx
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