Exercise

Fill in the blanks.

1. If a municipal offering is oversubscribed, the correct order in which syndicate orders will be honored will be: _____.

A. Presale, designated, group, member

B. Designated, member, presale, group

C. Group, designated, member, presale

D. Presale, group, designated, member

2. A _____ is a document drafted by the bond counsel that describes the project, its estimated cost, and the financing plan. It also lays out the issuer’s duties to the bondholder and pledges the full faith and credit of the issuing authority. This document is brought before the voting public for approval. Only after the public vote approves it does the process begin for the selection of an underwriter to sell the bonds.

3. When a municipal offering is undersold, in a/n _____ [undivided or divided] account, the unsold bonds will be redistributed to every underwriter according to its proportionate share of the total issue.

4. The difference between a preliminary official statement and a final official statement is that in the preliminary official statement, the _____is not included.

5. In a municipal underwriting, the total takedown includes the _____and the _____.

6. The final settlement of municipal syndicate accounts is _____ [30 or 60 or 90] days.

7. The date at which the bonds are delivered to the underwriters and paid for is called the _____ date. It is also called the _____ date.

8. _____ must receive the final official statement from the issuer within _____ business days after a bond purchase agreement or its equivalent has been signed.

9. The _____ is the set of prices or yields for each maturity at which the new securities will be offered to the public.

10. The date when interest will start accruing on the purchased bonds is called the _____.

11. A _____ bond issue is one in which the bonds are scheduled to mature over several different years and the bonds are quoted on a yield to maturity basis.