31. The _______ is the party that lends the funds in a commercial bill transaction.
A: acceptor
B: discounter
C: drawer
D: endorser

B
32. In relation to a commercial bill, the acceptance fee is:
A: the discounter’s fee for taking on the risks associated with discounting the bill
B: the fee for drawing up the bill
C: the fee for taking the liability for paying the holder at maturity
D: the drawer’s fee for taking on the risks associated with drawing the bill.

C
33. When a party endorses a bank bill, it:
A: repays the face value of the bill to the holder at maturity
B: creates a liability for payment of the bill
C: provides the funds to the seller
D: provides the funds to the discounter of the bill.

B
34. A company issues a 90-day bill with a face value of $100 000, yielding 7.65% per annum. What amount would the company raise on the issue?
A: $84 130.46
B: $92 350.21
C: $98 123.39
D: $98 148.62

D
35. A holder of a 180-day bill with 60 days left to maturity and a face value of $100 000 chooses to sell it into the market. If 60-day bills are currently yielding 6.8% per annum, what price will be obtained?
A: $81 728.61
B: $89 945.79
C: $97 813.27
D: $98 894.55
D
36. Promissory notes have a decided advantage over bills in that:
A: they are liquid
B: an issuer of a promissory note does not incur a contingent liability
C: a borrower without a strong name in the markets does not need bank endorsement
D: sole liability to repay the face value at maturity belongs to the underwriting bank(s).

B
37. A debenture is:
A: an unsecured bond that only best-name corporate borrowers can issue
B: a legal document stating the restrictive covenants on the loan
C: a secured bond that is secured by a charge over the assets of the issuer
D: a corporate bond that has a credit enhancement.

C
38. A company issues a long-term debt security