24 Jun CATEGORIZE FINANCIAL TRANSACTIONS AS TAKING PLACE IN THE PRIMARY OR SECONDARY MARKET.
Overview:
Respond to five questions about financial markets, financial institutions, and interest rates.
• Competency: Evaluate the global financial environment.
o Define factors that determine the nominal interest rate on a financial security.
o Categorize financial transactions as taking place in the primary or secondary market.
o Identify financial instruments as money market securities or capitalmarket securities.
Competency: Define finance terminology and its application within the business environment.
o Define the concept of terms structure of interest rates.
o Describe services offered by each type of financial institution.
Instructions:
• Respond to the following five questions. Write your responses in a Word document, and number them 1–5.
1. Categorize each of the following transactions as taking place in either the primary or secondary market:
o Supercorp issues $180 million of new common stock.
o HiTech, Inc. issues $30 million of common stock in an IPO.
o Megaorg sells $10 million of HiTech preferred stock from its marketable securities portfolio.
o The XYA Fund buys $220 million of previously issued Supercorp bonds.
o A. B. Corporation sells $15 million of XYZ common stock.
Identify whether the following financial instruments are capital market securities or money market securities:
o U.S. Treasury bills.
o U.S. Treasury notes.
o U.S. Treasury bonds.
o Mortgages.
o Federal funds.
o Negotiable certificates of deposit.
o Common stock.
o State and government bonds.
o Corporate bonds.
Identify the different types of financial institutions. What are the main services each of these financial institutions offers?
Define the six factors that determine the nominal interest rate on a security.
Define the concept of term structure of interest rates. What are three theories that explain the future yield curve of interest rates?
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.