Federal and MSRB Regulations
_________ expenses are not subject to the Gift Rule
What is entertainment/business?
This period prohibits investors from exercising a bond's call privilege any time after issuance.
What is the call protection period?
When an issuer issues a bond with a private corporation, they lease this kind of bond.
What is an Industrial Development Bond?
Dealers that sell municipal securities to customers in the primary market are required to provide some for of OS by this date.
These Treasuries are known to be interest-bearing.
What are Treasury bonds and notes?
The MSRB requires BDs to maintain political contribution records for this length of time.
What is 6 years?
What is the day after the settlement date?
This represents the ratio of net revenue to debt service.
In competitive sales, the greatest priority is allotted to presale orders. In negotiated sales, the greatest priority is given to this type of order.
What is a retail order?
Treasury bills are sold with these maturities.
1 month (4 weeks)
3 months (13 weeks)
6 months (26 weeks)
1 year (52 weeks)
Under Rule G-42, an advisor must have a Duty of ___ and a Duty of ____.
What is a Duty of Loyalty and Duty of Care?
The longer a bond's duration, the ________ the bond's price is to changes in interest rates.
What is more sensitive?
If a municipality contributes an amount that's less than the Annual Required Contribution, it will result in this.
What is a net OPEB obligation?
All of the above are included in the underwriter's bid except for the following:
Bond
NIC
Reoffering Yields
TIC
What is the reoffering yield?
The FRB exerts its influence through public media in an effort to control the money supply through a tactic known as this.
What is moral suasion?
This equation represents a municipality's Statement of Net Position.
What is: Assets + Deferred Outflows - Liabilities - Deferred Inflows ?
This is the risk of existing bond prices declining while interest rates are rising
What is interest rate risk?
Though both VRDOs and auction rate municipal securities are long-term securities with short-term trading features, this key difference separates them.
What is the put feature of a VRDO?
Pending their deposit into the investment trust, municipal securities are deposited here first.
What is an accumulation account?
As demand decreases for short term bonds, price and yield will do this.
What is decrease and increase?
In the case of non-national banks that are NOT members of the Federal Reserve System, this regulatory agency enforces MSRB rules.
What is the Federal Deposit Insurance Corporation?
A $100,000 municipal bond with a 4% coupon rate is being quoted by a dealer at 101 3/4. If the number of days of accrued interest since the last coupon is 85, this is the bond's clean price.
What is $101,750?
DAILYYYYYYYY DOUBLEEEEEEEEEEE !!!!!!!!!!!!!!!!
When a private entity is the ultimate borrower, they may issue this bond, which may yield tax-exempt interest if they go through this process.
What is a Private Activity Bond, and what is a TEFRA hearing?
SEC Rule 15c2-12 pertains to most primary offerings of municipal securities; however, there is an exception made for bonds that are sold to <35 investors in $100,000 denominations through a process known as this.
What is private placement?
The risk that the variable rate being paid by the issuer on its bonds is different than the variable interest rate being received under the swap is called this.
What is basis risk?