Pick the larger of the two

Exercise and reference answers

Questions

1. A

   Term loan: 5 to 12 years

   B

   Bond: 10 to 30 years

   Higher value

   Bond: 10 to 30 years

2. A

   Treasury bill maturity

   B

   Treasury bond maturity

   Higher value

   Treasury bond maturity

3. A

   Commercial paper rate

   B

   Bank loan rate

   Higher value

   Bank loan rate

4. A

   Junk bond return

   B

   Prime corporate return

   Higher value

   Junk bond return

5. A

   Broker market volume

   B

   Regional exchange volume

   Higher value

   Broker market volume

6. A

   Revenue bond interest

   B

   General obligation rate

   Higher value

   Revenue bond interest

Instructions

Tap whichever side is the longer or the higher of the pair.

Explanation