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Money and credit - Ivanov VM

Control questions

1. Determination of the securities market.

2. What are securities?

3. What are the details of the event should contain?

4. How much can issue bonds of joint stock companies?

5. Define the treasury bills.

6. Types of savings certificates.

7 shows a typical scheme domiciliation of bills in Ukraine.

Self-assessment tests

1. The securities market is divided into:

a) public and private;

b) companies and financial institutions;

c) primary and secondary;

d) production and non-production capital investment;

e) answers a), b), d) the right;

e) all answers are correct.

2. Specify the main securities market participants:

a) issuers;

b) the government;

c) commercial banks;

d) investors;

d) investment institutions;

e) answers a), b), c), d) the right;

g) all the answers wrong.

3. Under maturity securities understand:

a) a period of 5 years;

b) the date of repayment in cash;

c) a period of 100 years;

g) date of sale of securities in the market;

d) the period specified in the most valuable paper;

e) Answer b), d), e) the right;

g) all answers are correct.

4. Securities differ from each other:

a) issuers;

b) the names, denominations, degree of protection;

c) the maturity, breadth of markets, nominal values;

d) the levels of credit risk and the profit brought by the norm;

d) all answers are correct;

e) answers a), b) and d) are correct.

5. Generally, the auction for the sale of securities investors make the application:

a) a certain amount (e.g., one million USD);

b) certain items;

c) competitive;

d) non-competitive;

e) answers a), b), c) the right;

e) all answers are correct.

Tasks

1. It is known that the average bid price on the treasury bill is 97, 231 USD, the repayment term - 81 days. Define:

• income that is received by the buyer, would keep if at maturity the bill nominal value of UAH 1000000;

• rate on the bill.

2. Define the coupon equivalent income, using the data of the problem 1.

3. The coupon rate on the bill is 11.75%, nominal - 97.231 USD. Determine income for six months, a year.

4. The dealer buys a lot (100 pieces) of securities with par value of UAH 1 million each. Determine the spread for the whole lot, if the proposed price is 109% of par 11/32 and requested - 15/32 109%

5. Determine the income at maturity, if the asking price

15/32 is 109%, the coupon rate - 11.75%, the nominal value of UAH 97.231 and term to maturity - 2 years and 138 days.