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Finance Five MCQs




Question;2 points Save Which of the following statements is true? The value of a bond is inversely related to changes in investors' present required rate of return. If interest rates decrease, the value of a bond will decrease. If interest rates increase, the value of a bond will increase. None of the above. The formula for calculating the present value (PV) of a perpetuity isPV = PP/(1 + i), where PP is the perpetuity payment and i is the discount rate. TrueFalse As market rates of interest rise, investors move their funds into bonds, thus increasing their price and lowering their yield. TrueFalse If the interest rate is zero: PV = FVn PV = FV x n FV = PV FV = PV/en Question 24 2 points Save An efficient market may be defined as one in which the values of all securities at any instant in time fully reflect all available information. TrueFalse


Paper#49700 | Written in 18-Jul-2015

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