Municipal Securities
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| Principal and interest from Revenue bonds are paid from.... | fees imposed on the users of the facility for which the bond was issued.
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| A _________ is conducted before a revenue bond is issued to deermine whether a project is necessary and wheter it can pay for itself | Feasability study
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| True or False: A GO bond is riskier than a Revenue bond and thus has a higher coupon. | False
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| User Fee Revenue Bond | Payed by fees charged for water and sewage usage
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| Tolls and Fees bond | Revenue bond payed by fees charged for the usage of highways, toll bridges, airports, and other projects
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| Special Tax Bond | Revenue Bond issued for specific purposes such as building or renewing roads or rapid transit system. Paid from revenues from tax placed on specific items such as gasoline or tobacco tax
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| Special Assessment Bond | issued to genreate money either to purchase specific property or construct facilities for a specific group of users. (only revenue bond to gain fees from property taxes)
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| Industrial Development Bonds | issued by muni for corporation to finance projects such as pollution facilities, industrial parks, stadiums, airports, or educational facilities. Rating is based on that of the corporation.
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| Public Housing Bonds | finances low income housing. Backed by the federal government, paid for by rent or mortgage payments
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| Double Barrel Bonds | Revenue and a GO bond at the same time. Paid by the revenues of facility first, and then by property taxes if not fully covered.
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| Moral Obligation Bonds | paid for by revenues of facility, and backed by annual appropriation from state.
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| True or False: BABS are liquid | False
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| Basis Book | used to change yields to dollars or dollars to yields
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| True or False: Put bonds can be redeemed prior to maturity without being called by the issuer | True
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| During the Put Period, the ________ never exceeds the _________ | Yield; Coupon
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| True or False: Muni's can be registered as interest only | False
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| What is listed in the INDENTURE? | Maturity Dates, Interest Rates, Name of Trustee, Protective covenants
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| What cannot be listed in the INDENTURE? | Yield to maturity
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| Part of the indenture can be found in the ________ | official Statement
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| Net Revenues Pledge | Expenses are paid before debt service
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| Gross Revenue Pledge | Debt service is paid before expenses
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| Sinking Funds are set up for _______ only | Term bonds
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| Money from sinking funds must be invested in.... | US government securities
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| Feasability studies and Engineering Reports are for what type of bonds? | Revenue Bonds
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| The IRS _________ tax exempt status. The bond counsel _________ tax exempt status. | Determines; Assesses
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| Legal Opinion/Bond Counsel Duties | Researches laws and checks requirements, assists in getting legislation passed, supplies info to underwriters
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| The day interest accrual starts is the | dated date
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| Three bond Rating Agencies | Standard and Poors, moody's, fitch's
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| The three bond rating agencies rate what type of bonds? | GO Bonds and Rev bonds that are backed by property taxes.
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| True or False: MRSB rules apply to issuers | False
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| A _____________ shows the yeild to maturity on a tombstone advertisement | offering scale
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| Competitive bidding is appropriate for what bonds only? | GO bonds. Corporate bonds are standby
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| Bond Buyer publication | For underwriters only. 25 Revenue bonds with 30+ years to maturity.
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| GO11, GO20, GO40 mature in ________ years | 20.
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| A broker's broker never | never acts in a principal transaction. It acts on an Agency Basis
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| True or false: Subject/Nominal quotes are given for informational purposes only | True
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| Current yeild formula | current yield = nominal yield/current market price
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| Gross Revenues pledge formula | revenues/debt service
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| Net revenues pledge formula | revenues - expenses/debt service
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| municipal bond insurers include all of the following except: MBIA, AMBAC, FGIC, FDIC | FDIC
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| Taxable Bond Yield Formula | Taxable Bond Yield = Municipal Bond Yield/1-T
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| MSRB rules apply to who? | broker dealers, registered reps, underwriters. Do not apply to issuers
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| Who enforces MSRB rules? | FINRA, comptroller of currency, the fed, FDIC, SEC
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| According to MSRB, what are the guidelines concerning opening accounts for employees of other firms? | Written notice must be sent to firm, copies of confirmations must be sent to employer, order does not need to be authorized
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| True or false: Current Yield = Basis | True
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| True or False: Nominal Yield = Basis | False
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Created by:
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