Al is retired and enjoys his daily life. His one concern is that his bonds provide a steady stream of income that will continue to allow him

66.

"Cat" bonds are primarily designed to help:    A.  municipalities survive economic recessions. B.  corporations respond to overseas competition. C.  the federal government cope with huge deficits. D.  corporations recover from involuntary reorganizations. E.  insurance companies fund excessive claims. Refer to section 7.4

67.

Mary is a retired widow who is financially dependent upon the interest income produced by her bond portfolio. Which one of the following bonds is the least suitable for her to own?    A.  6-year, putable, high coupon bond B.  5-year TIPS C.  10-year AAA coupon bond D.  5-year floating rate bond E.  7- year income bond Refer to section 7.4

68.

Al is retired and enjoys his daily life. His one concern is that his bonds provide a steady stream of income that will continue to allow him to have the money he desires to continue his active lifestyle without lowering his present standard of living. Although he has sufficient principal to live on, he only wants to spend the interest income provided by his holdings and thus is concerned about the purchasing power of that income. Which one of the following bonds should best ease Al's concerns?    A.  6-year, putable, high coupon bond B.  5-year TIPS C.  10-year AAA coupon bond D.  5-year municipal bond E.  7- year income bond Refer to section 7.4

123.