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acem Incorrect Question 1 0 / 1 pts Which of the following statements is false? A) Municipal bonds are issued by state government B)Some Municipal bonds are insured against default risk C) Municipal bonds are rated similar to corporate bonds by rating agencies such as Moody, Fitch, Standard and Poor D) Municipal bonds are free from state taxes E) General obligation bonds are supported by he municipal government's ability to tax O A B 0 Incorrect Question 4 0/1 pts Investors who require a lumpsum payment can choose a Principal Only part and investors who desire a periodic stream of payment can choose Interest only part in -- A) Segmented bonds B) Municipal divided bonds C) Corporate structured bonds D) Stripped treasury bond E) Agency bonds B O E Incorrect Question 6 0/1 pts In general, which of the following statements are false regarding Treasury bonds: A) Issued by the Federal government B) Free from default risk C) Highly liquid D) Has an active secondary market E) Free from federal taxes B OD Incorrect Question 7 0 / 4 pts The Treasury auctioned $2.5 billion par value 91-day T-bills, the following bids were received: Bidder Bid Amount Bid Price A $500 million $0.9940 B $750 million $0.9901 C $1.5 billion $0.9925 D $1 billion $0.9936 E $600 million $0.9939 The Treasury also received $750 million in noncompetitive bids. Who will receive T- bills, what quantity, and at what price? Remember that the govt will accept all the noncompetitive bids first. Which of the following bids would be accepted: A) A only B) A&B only C) C&D only D) A, E, and partially accept D E) Accept all the bids A

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