Case Wines Company issues $805,000 of 9%, 10-year bonds on March 31, 2017. The bonds pay interest on March 31 and September 30. Which of the following statements is true?
A) If the market rate of interest is 10%, the bonds will issue at a premium.
B) If the market rate of interest is 10%, the bonds will issue at a discount.
C) If the market rate of interest is 10%, the bonds will issue at par.
D) If the market rate of interest is 10%, the bonds will issue above par.
B
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Given the requisites of risk pooling, which of the following exposures would make the best subject of a profitable insurance pool? Assume a premium appropriate to the exposure is charged and analyze the exposure from the insurer's standpoint
A) Insuring all the lives of college seniors in the U.S. for $10,000 each, without an initial medical exam B) Insuring college students against their GPA falling below a 3.0 C) Insuring all the dorms on a single college campus against property damage D) Insuring students against the theft or disappearance of textbooks
The three largest Federal Reserve banks in terms of assets are those of New York, Chicago, and
A) Atlanta. B) Los Angeles. C) Baltimore. D) San Francisco.