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strayer fin534 quiz 3

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Question;FIN 534 Week 4 quiz 3;Question 1;Which;of the following statements is CORRECT?;Question 2;Which;of the following statements regarding a 30-year monthly payment amortized;mortgage with a nominal interest rate of 10% is CORRECT?;Question 3;A U.S.;Treasury bond will pay a lump sum of $1,000 exactly 3 years from today. The nominal interest rate is 6%, semiannual;compounding. Which of the following;statements is CORRECT?;Correct Answer;Question 4;You;plan to analyze the value of a potential investment by calculating the sum of;the present values of its expected cash flows.;Which of the following would increase the calculated value of the;investment?;Correct Answer;Question 5;You are;considering two equally risky annuities, each of which pays $5,000 per year for;10 years. Investment ORD is an ordinary;(or deferred) annuity, while Investment DUE is an annuity due. Which of the following statements is CORRECT?;Correct Answer;Question 6;Which;of the following statements regarding a 30-year monthly payment amortized;mortgage with a nominal interest rate of 10% is CORRECT?;Correct Answer:.;Question 7;A;$150,000 loan is to be amortized over 7 years, with annual end-of-year;payments. Which of these statements is;CORRECT?;Answer;Correct Answer:.;Question 8;Which;of the following statements is CORRECT?;Correct Answer:.;Question 9;Which;of the following investments would have the highest future value at the end of;10 years? Assume that the effective;annual rate for all investments is the same and is greater than zero.;Answer;Correct Answer;Question 10;Which;of the following statements is CORRECT?;Correct Answer;Question 11;Which;of the following statements regarding a 15-year (180-month) $125,000;fixed-rate mortgage is CORRECT? (Ignore;taxes and transactions costs.);Correct Answer;Question 12;Which;of the following bank accounts has the highest effective annual return?;Correct Answer;Question 13;A U.S.;Treasury bond will pay a lump sum of $1,000 exactly 3 years from today. The nominal interest rate is 6%, semiannual;compounding. Which of the following;statements is CORRECT?;Correct Answer:.;Question 14;Which;of the following statements is CORRECT?;Question 15;You are;considering two equally risky annuities, each of which pays $5,000 per year for;10 years. Investment ORD is an ordinary;(or deferred) annuity, while Investment DUE is an annuity due. Which of the following statements is CORRECT?;Answer;Correct Answer;Question 16;Amram;Inc. can issue a 20-year bond with a 6% annual coupon. This bond is not convertible, is not;callable, and has no sinking fund.;Alternatively, Amram could issue a 20-year bond that is convertible into;common equity, may be called, and has a sinking fund. Which of the following most accurately;describes the coupon rate that Amram would have to pay on the convertible;callable bond?;Correct Answer;Question 17;A;Treasury bond has an 8% annual coupon and a 7.5% yield to maturity. Which of the following statements is CORRECT?;Answer;Correct Answer;Question 18;Which;of the following bonds has the greatest interest rate price risk?;Correct Answer;Question 19;Which;of the following statements is CORRECT?;Correct Answer:.;Question 20;Which;of the following statements is CORRECT?;Correct Answer:.;Question 21;A;15-year bond with a face value of $1,000 currently sells for $850. Which of the following statements is CORRECT?;Correct;Answer:.;Question 22;Which;of the following statements is CORRECT?;Correct Answer: \;Question 23;Assume;that all interest rates in the economy decline from 10% to 9%. Which of the following bonds would have the;largest percentage increase in price?;Correct Answer;Question 24;A;12-year bond has an annual coupon rate of 9%.;The coupon rate will remain fixed until the bond matures. The bond has a yield to maturity of 7%. Which of the following statements is CORRECT?;Answer;Correct Answer;Question 25;A;10-year bond pays an annual coupon, its YTM is 8%, and it currently trades at a;premium. Which of the following statements is CORRECT?;Correct Answer;Question 26;Which;of the following statements is CORRECT?;Answer;Correct Answer;Question 27;Which;of the following statements is CORRECT?;Correct Answer;Question 28;A;10-year bond with a 9% annual coupon has a yield to maturity of 8%. Which of the following statements is CORRECT?;Correct Answer;Question 29;A;10-year corporate bond has an annual coupon of 9%. The bond is currently selling at par;($1,000). Which of the following;statements is NOT;CORRECT?;Correct Answer;Question 30;Which;of the following statements is CORRECT?;Correct Answer

 

Paper#49849 | Written in 18-Jul-2015

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