金融英语练习答案(1)

3. Translate the following passages into Chinese

(1) LIBOR即伦敦银行同业拆放利率是世界上最活跃的利率市场。它是由各个银行在伦敦货币市场上相互间借贷短期存款的利率所决定的。LIBOR也被用来确定许多其他金融衍生品的价格，包括利率期货、互换和欧洲美元。鉴于伦敦作为全球金融中心的重要性，LIBOR不仅仅适用于英镑，同时适用于世界其他主要货币如美元、瑞士法郎、日元以及加元。

(2) 个人、公司以及机构用来存放现金的货币市场基金是这场金融危机的另一个受害者。随着利率的下降和成本的上升，一些金融公司抽回了资金。这令投资者争先恐后地为他们的资金寻找其他安全且高收益的投资。

Unit 6 Bond Market

1. Answer the following questions based on the text

(1) Foreign bond is a bond that is issued in a domestic market by a foreign entity. For example, Yankee bond is a bond denominated in U.S. dollars but issued in the United States by foreign banks and corporations.

(2) Individual investors are people, while institutional investors are mutual funds, brokers, and corporations. Institutional investors have far more impact on the market since they buy and sell much large volumes of stock.

(3) The major difference lies in the maturities of the instruments. The maturity of Treasury bill is less than one year, the maturity of Treasury note is from one to ten years, and the maturity of Treasury bond is over ten years.

(4) Both of them are municipal bonds. The difference is whether there are specific assets or projects as security. General obligation bonds do not have such assets or projects but are backed by the government ability to tax its citizens. Revenue bonds are used to raise funds for projects that generate revenues and backed by the cash flow of the particular revenue-generating project.

(5) Mortgage bond is backed by fixed assets as security, while debentures are long-term unsecured bonds that are backed only by the general creditworthiness of the issuer.

(6) In the event of bankruptcy, subordinated debt has claims on assets only after senior debt has been paid off.

(7) Bonds above Moody’s Baa or Standard & Poor’s BBB rating are considered of investment grade.

(8) A sinking fund is a pool of money set aside by a corporation to help repay a bond issue. Bond agreement usually requires a company to make periodic interest payments to bondholders throughout the life of the bond, and then repay the principal amount of the bond at maturity. In this way, the sinking fund provision is

beneficial to the bondholder.

2. Translate the following passages into English

(1) Municipal bonds are bonds issued by local governments or their authorized institutions or agencies, including general obligation bonds and revenue bonds. General obligation bonds are secured by all the future taxes of the local

government as a source of repayment, while revenue bonds are secured by the fees collected from the users of the infrastructure and the fees are calculated based on the construction cost.

(2) Sinking fund is a pool of money that is set aside periodically before the maturity by the bond issuer to ensure the company to have enough money to repay the principal to the creditors at maturity. The money is deposited with a selected bank which serves as a trustee to use the money to invest, and the investment returns will add to the fund.

3. Translate the following passages into Chinese

(1) 投资者利用债券互换来实现各种收益。互换，即同时售出一项资产和买入另一项资产，可以用来改变到期日，提升资产组合的信用质量，以及增加货币收入，或者可以用来实现许多其他的目标。最常用的互换是用来节省税款。任何拥有债券的人，以低于债券购买价卖出债券且同时获得资本收益或其他的收入，而这些收益或收入可能部分或全部由税收损失所抵消，因而可以从税收互换中获益。在这两个步骤中，投资者以低于之前购买价的价格卖出债券，并且同时以相同的价格买入类似的债券。

(2) 赎回条款是诸多债务协议的重要组成部分，它赋予发行者在债券到期前的某一点提前赎回或偿还债券的权利。赎回条款的目的是在合理的程度上保护贷款人在贷款之后不受因借款人引起的不利情况的影响。贷款人通常不会使用赎回条款，除非借款人很快便不能够履行贷款合同的条款。在行使赎回条款时，贷款人经常先控制用于担保贷款的抵押品，至少可以用抵押品来清偿部分欠款。

Unit 7 Stock Market

1. Answer the following questions based on the text

(1) The differences between common stock and preferred stock are as follows: a) Common stock represents an ownership interest in the firm and its holders vote and receive dividends. The preferred stock is a security with characteristics in-between a bond and a common stock and its holders do not usually vote unless the firm has failed to pay the promised dividend. b) Preferred stockholders have a greater claim to a company’s assets and earnings. When there are distributions to be made, preferred stockholders must be paid before common stockholders. In the

event that the company goes bankrupt, common stockholders are last in line for the company’s assets. They will not receive any money until after the preferred stockholders are paid out. c) Dividends of preferred stocks are paid at regular intervals and generally greater than those of common stocks.

(2) IPO means initial public offering. The market for stock that has recently gone public is called the IPO market. When a private corporation’s stock is offered to the public for the first time, it needs to use an IPO market.

(3) The commission brokers are individuals employed by brokerage firms that are members of the NYSE. The floor brokers are independent, freelance brokers who work for themselves rather than for a brokerage firm.

(4) The NYSE is an auction-based market where traders meet on the floor of the exchange, using person-to-person, telephone orders or electronic orders. The Nasdaq, on the other hand, is strictly an electronic exchange, an intangible organization.

(5) Margin requirement is the amount that an investor must deposit in a margin account before buying on margin or selling short, as required by the Federal Reserve Board’s Regulation T.

2. Translate the following passages into English

(1) The Shanghai Stock Exchange (SSE), which was founded on November 26, 1990

and came into operation on December 19 at the same year, is a non-profit corporation directly governed by the China Securities Regulatory Commission (CSRC). The SSE adopts the electronic auction trading mode and the buying and selling of all the listed securities must be made by public bidding through the mainframe computer. It is the mainframe computer that matches the deals in accordance with the principal of price-time priority. By the end of December 2007, the SSE possessed 1,125 listed securities and 860 listed companies, with a combined market capitalization of RMB 26,983.9 billion yuan.

(2) Dow Jones Industrial Average is one of the stock indexes created by Charles Dow,

the founder of The Wall Street Journal and the Dow Jones & Company. It reflects the general trend of the US stock market, covering such industries as finance, manufacturing, science and technology, entertainment, and retail. 3. Translate the following passages into Chinese

(1) 卖空股票涉及使用借入的资金，这就是人们所知的保证金交易。当进行卖空交易时，你开立一个保证金账户，有了这个账户你就可以用你的投资作为抵押从经纪公司借入资金。当用保证金账户做多的时候，你很难控制损失，因为你必须满足25%的最低维持保证金的要求。如果账户余额低于这个标准，你就会收到追加保证金的通知，你将被迫要么存入更多的现金，要么清算头

寸。

(2) 周一美国主要股票指数收盘略高，这是由最后一分钟的买盘拉起的。道琼斯工业平均指数连续11天增长。周一，由30只股票构成的道琼斯工业平均指数收盘在9,108.51点的更高点位，上涨15.26点，涨幅0.17%。标准普尔500指数收盘在982.18点，增加了2.92点，增幅0.30%。高科技重工业纳斯达克综合指数上涨1.93点，以1,967.89点收关，涨幅为0.10%。

Unit 8 Mortgage Market

1. Answer the following questions based on the text

(1) A mortgage is a pledge of property to secure payment of a debt. It may refer to a loan secured by a mortgage on real property.

(2) The mortgages are originated by the mortgage originators, such as thrifts, commercial banks, mortgage bankers, life insurance companies, etc. The possible fees the originators collect include origination fee and servicing fee.

(3) The difference between fixed rate mortgages and adjustable-rate mortgages lies in that the former’s interest rate and monthly payment do not vary over the life of the mortgage, but the interest rate on the latter is tied to some market interest rate and therefore changes over time.

(4) A balloon mortgage does not fully amortize over the term of the loan, and the balance will be paid at maturity. The final payment is called balloon payment because of its large size.

(5) Asset securitization is a financial innovation that uses a mortgage or a pool of mortgages as collateral for issuing a security or securities. Different from traditional system for financing the acquisition of assets, it calls for a financial intermediary to originate a loan, retain the loan in its portfolio, and service the loan and obtain funds from the public.

(6) A pass-through is a security that is created when one or more holders of mortgages from a pool of mortgages sell shares or participation certificates in the pool. It was created because risk-averse investors prefer investing in a pool of mortgages. A pass-through is considered more liquid than an individual mortgage. (7) Tranche is a French word meaning “slice” or “portion”. It is used to describe a security that can be split up into smaller pieces and subsequently sold to investors. The number of tranches of collateralized mortgage obligations depends on how many maturity classes the CMO is divided into. Usually, tranches with a first lien on the assets of the assets pool are senior tranches and are safer investment, and tranches with either a second lien or no lien are junior notes and more risky investment.