Exam 15: Treasury and Agency Securities Markets

For a 100-day Treasury bill with a face value of $100,000, if the yield on a bank discount basis is quoted as 5.00%, what is the price?

When the Fed buys collateral for its own account, this is called a collateral system.

The U.S. Congress has chartered entities to provide funding support for the housing and agricultural sectors of the U.S. economy, as well as to provide funding for specific U.S. government projects. The market for the debt instruments issued by these government-chartered entities is called ________.

Sovereign debt is the obligation of a country's central government.

Rather than representing a share of the trust as the trademarks do, Treasury receipts (TRs) represent ownership of a Treasury security.

The auction for Treasury securities is conducted on a ________.

Stripped Treasury securities are zero-coupon instruments that, while not issued by the U.S. government, are backed by Treasury securities from which they are created.

The yields on ________ government bonds are viewed as benchmark interest rates in Europe.

________, there is a regular calendar auction and winning bidders are allocated securities at the yield (price) they bid.

The process of separating each coupon payment, as well as the principal (called the corpus), and selling securities against them is referred to as coupon separating.

A type of government-chartered entities is ________.

In January 1999, the structure of the government bond market changed with the start of ________ enabling the Euro government bond market to become the largest government bond market in the world in terms of size and number of issues.

Which of the below statements is FALSE?

What is the reason for distinguishing between local debt ratings and foreign currency debt ratings?

________ consists of the 12 district Federal Home Loan Banks and their member banks.

________, governments announce auctions when prevailing market conditions appear favorable.

Describe the types of issued by non-U.S. central governments such as the British government and the Canadian government.

The U.S. Department of the Treasury ________.

The ________ for Treasury securities is an over-the-counter market where a group of U.S. government securities dealers offer continuous bid and ask prices on outstanding Treasuries.

A government-chartered entity is classified as either a government-owned corporation or a government-sponsored enterprise (GSE).