Financial Institutions and Markets Ch. 3
Quiz yourself by thinking what should be in
each of the black spaces below before clicking
on it to display the answer.
Help!
|
|
||||
|---|---|---|---|---|---|
| Call Feature | A bond provision allowing the issuer of the bonds to buy the bonds back before maturity at a specified price.
🗑
|
||||
| Convertibility Clause | A bond provision that allows investors to convert the bond into a specified number of common stock shares.
🗑
|
||||
| Forward Rate | The one-year interest rate that is anticipated one year ahead; commonly used as the markets forecast of the future interest rate.
🗑
|
||||
| Investment-Grade Bonds | Bonds that are rated as Baa or better by Moody's and BBB or better by Standard and Poor's (S&P).
🗑
|
||||
| Liquid Security | A security that can be easily converted to cash without a significant loss in value.
🗑
|
||||
| Liquidity Premium Theory | A theory stating the shape of a yield curve depends on investors' and borrowers' preferences for liquidity.
🗑
|
||||
| Preferred Habitat Theory | A theory stating that the shape of the yield curve is determined primarily by the segmented markets theory; however, investors and borrowers may wander from their preferred markets if certain events occur.
🗑
|
||||
| Pure Expectations Theory | A theory stating that the shape of the yield curve is determined solely by expectations of future interest rates.
🗑
|
||||
| Segmented Markets Theory | A theory stating that the shape of the yield curve is a result of investors' and borrowers' actions, who choose securities with maturities that satisfy their foretasted cash needs.
🗑
|
||||
| Term Structure of Interest Rates | The relationship between maturity and annualized yield.
🗑
|
||||
| Yield Curve | A Graph showing the relationship between maturity and annualized yield.
🗑
|
Review the information in the table. When you are ready to quiz yourself you can hide individual columns or the entire table. Then you can click on the empty cells to reveal the answer. Try to recall what will be displayed before clicking the empty cell.
To hide a column, click on the column name.
To hide the entire table, click on the "Hide All" button.
You may also shuffle the rows of the table by clicking on the "Shuffle" button.
Or sort by any of the columns using the down arrow next to any column heading.
If you know all the data on any row, you can temporarily remove it by tapping the trash can to the right of the row.
To hide a column, click on the column name.
To hide the entire table, click on the "Hide All" button.
You may also shuffle the rows of the table by clicking on the "Shuffle" button.
Or sort by any of the columns using the down arrow next to any column heading.
If you know all the data on any row, you can temporarily remove it by tapping the trash can to the right of the row.
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Created by:
CBough
Popular Finance sets