Munis

Question 1

When yields are lower, prices are?

Answer 1

Higher

Question 2

Who attests to the legality of a bond issue and issues a legal opinion new muni’s?

Answer 2

Bond council

Question 3

What is a debt limit?

Answer 3

What is debt limit? The max amount a municiplaity can have OUTSTANDING

Question 4

Difference better Eastern and Western account?

Answer 4

Western is divided responsibility. Each to own

Eastern is undivided. Part responsibility for other

Question 5

how do issuers determine winning bid?

Answer 5

Subtract and premium from or add any discount to the totaly interest cost

Question 6

Total takedown is made up of?

Answer 6

Concession and Aditional Takedown

Question 7

How to work out mil tax?

Answer 7

Remove last two 0’s of Assessed Value. Then X by multiple numbers of mils

Question 8

Double-barreled bonds

Answer 8

Have two sources of revenue to support them

Question 9

How much of annual cost is deductible when banks purchase qualified muni’s?

Answer 9

80%

Question 10

Which type of municipal bond issues is associated with a flow of funds?

Answer 10

Revenue bonds.

Question 11

Which bonds are backed by user fees (project earnings) and are generally low risk?

Answer 11

Revenue bonds

Question 12

Which factors would be considered in analyzing the credit worthiness of a revenue bond?

Answer 12

Debt service ratio and Management

Question 13

Which type of tax does overlapping debt refer to?

Answer 13

Property

Question 14

What is the order of priority in group orders syndicates?

Answer 14

Presale
Net designated
Members

Question 15

Whch bonds may be included in AMT?

Answer 15

Industrial revenue bonds

Question 16

What is a MIG Rating?

Answer 16

Short term notes (Revenue anticpation notes)

Question 17

The reoffering yield

Answer 17

The yield that bonds are offered to public

Question 18

Brokers Broker

Answer 18

Act as agents in trades between dealers and institutions

Question 19

Syndicate determines amount for a new issue

Answer 19

Reoffering price minus the spread

Question 20

A notice of sale

Answer 20

Is published to provide syndicates with information on proposed new (primary market) issues

Question 21

Which taxes to municipalities get their revenue taxes from? Property (Ad valorem), sales, income, gasoline etc

Answer 21

What does flow of funds relate to? Revenue bond offerings - priority of disbersing project revenues

Question 22

In what order are distributions paid under a net revenue pledge?

Answer 22

(1) operating and maintenance expenses
(2) debt service
(3) debt service reserve
(4) surplus

Question 23

What does the placement ratio show?

Answer 23

The relationship between the number of bonds sold and the number for sale

Question 24

What does a dealer concession quote of ½ (0.5%) to another dealer mean?

Answer 24

A discount from the yield that the broker/dealer is quoting. e.g $5 per 1,000 of par

Question 25

What does the Bond Buyer Revdex consist of?

Answer 25

25 revenue bonds with 30 year maturities.

Question 26

GO Index

Answer 26

20 bonds, 20 year maturity

Question 27

GO Muni Bods are backed by

Answer 27

The full taxing power of the muni

Question 28

How is tax-free equivalent yield calculated?

Answer 28

Corporate rate x (1- investor tax bracket) e.g 9% (0.9) X (1- 0.32) = 0.612 (6.12%)

Question 29

ID (ind dev) bonds are backed by:

Answer 29

The full faith of the corp / not the muni

Question 30

Qualified legal opinion

Answer 30

Legal - but contingencies may limit flow of funds

Question 31

Unqualified legal opinion

Answer 31

Without qualifying limitations

Question 32

All muni bonds are issued in which forms:

Answer 32

Book-entry form and Fully registered form