Statements is true regarding repurchase agreements

Assignment Help Financial Management
Reference no: EM131189846

Which one of the following statements is true regarding repurchase agreements?

a. their initial maturity is greater than 1 year

b. they are an unsecured form of borrowing

c. U. S. Treasury securitites serve as their collateral

d. They make explict, rather than implict , interest payments

Reference no: EM131189846

Questions Cloud

Capital budgeting projects on basis of operating cash flow : When company's develop an expansion of equipment it is important to analyzed the operating cash flow. Why is it important to evaluate capital budgeting projects on the basis of operating cash flow.
Long-term growth in the dividends of the firm : Draper Company's common stock paid a dividend last year of $3.70. You believe that the long-term growth in the dividends of the firm will be 8% per year. If your required return for Draper is 14%, how much are you willing to pay for the stock?
Practice as matter of ethical and or legal concern : If you were to enter the banking industry you may find yourself approving or not approving loans. Do you see this practice as a matter of ethical and or legal concern? Do you think most all companies “window dress” their data?
Charged on trade credit is lower than bank interest rate : Which one of the following strategies would continue to be effective if a cash-strapped firm determines that the effective interest rate charged on trade credit is lower than the bank's interest rate?
Statements is true regarding repurchase agreements : Which one of the following statements is true regarding repurchase agreements?
Some derivatives are traded on exchanges : Some derivatives are traded on exchanges; others are traded by financial institutions, fund managers, and corporations in the over-the-counter market, or added to new issues of debt and equity securities. Compare and contrast the different types of e..
Value for the first bond with eight years left to maturity : D Corporation has three bonds outstanding. All three have a coupon rate of 7 percent and a $1000 par value. The first bond has one year left to maturity. The second bond has 4 years left to maturity. What is the value for the first bond with eight ye..
What are bonds worth today if required market rate of return : B Corporation has $1000 par value bonds with 7 years left to maturity, a stated annual coupon rate of 4.5 percent (with annual interest payments). What are these bonds worth today if the required market rate of return is 6 percent? _________ What are..
An increase in share price following increase in dividend : An increase in share price following an increase in dividends is logical if the:

Reviews

Write a Review

Financial Management Questions & Answers

  Bonds to support its expansion plans

Bear Co. wants to issue a new 10-year bonds to support its expansion plans. The company currently has 5.3 percent coupon bonds on the market that sell for $1,075, make semiannual payments and mature in 10 years. The face value of the bond is $1,000. ..

  Require an effective annual interest rate

You are considering a 10-year, $1,000 par value bond. Its coupon rate is 9%, and interest is paid semiannually. If you require an "effective" annual interest rate (not a nominal rate) of 11.52%, how much should you be willing to pay for the bond? Do ..

  Treasury note with two years to maturity

Assume that $1000.00 par value, semiannual coupon U.S. Treasury note with two years to maturity (YTM) has a coupon rate of 5%. The yield to maturity of the bond is 8.80%. Using this information and ignoring the other costs involved, calculate the val..

  How much should he set aside today for purchase

Fred plans to purchase a car four years from now. The car will cost $57,325 at that time. Assume that fred can earn 8.56 percent compounded monthly on his money. How much should he set aside today for the purchase?

  What is the project internal rate of return

Mode Publishing is considering a new printing facility that will involve a large initial outlay and then result in a series of positive cash flows for four years. If you know that the project has a regular payback of 2.9 years, what is the project'..

  Coupon bonds-what is the current yield on the bonds

Bourdon Software has 9.2 percent coupon bonds on the market with 18 years to maturity. The bonds make semiannual payments and currently sell for 107.4 percent of par. What is the current yield on the bonds?

  Property and casualty insurance

Mark Arkanfarkar (purely fictitious name) and his wife, Mary, have some concerns about their entire insurance program, which includes their personal insurance and their home based business. They are looking for advice and suggestions, as pricing and ..

  Amount of interest and principal paid on each mortgage

You plan to purchase a $200000 house using either a 30 year mortgage obtained from your local savings bank with a rate of 7.25 percent, or a 15 year mortgage with a rate of 6.50 percent. You will make a down payment of 20 percent of the purchase pric..

  Calculate the discount yield on this treasury bill

You would like to purchase a Treasury bill that has a $15,000 face value and is 69 days from maturity. The current price of the Treasury bill is $14,875. Calculate the discount yield on this Treasury bill. (Use 360 days in a year. Do not round interm..

  Before-tax component cost of debt

Oberon, Inc., has a $40 million (face value) 10-year bond issue selling for 97 percent of par that pays an annual coupon of 8.15 percent. What would be Oberon’s before-tax component cost of debt?

  What equal payments be

Mr. Bill S. Preston Esq. purchased a new house for $160,000. He paid $15,000 down and agreed to pay the rest over the next 10 years in 10 equal end of year payments plus 5 percent compound interest on the unpaid balance. What equal payments be?

  Where the assets of firm are transferred to the debt-holders

A leveraged buyout involves individuals assuming large personal debt loads in order to purchase the company from a previous owner. Preferred stock is considered a hybrid because the value can increase, like common stock, but it also offers interest p..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd