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##### FIN 534 Week 4 Quiz 3 (Strayer university)

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Question;FIN 534 Week 4 Quiz 3FIN 534 Week 4 Quiz 3 (Strayer university)FIN 534 Week 4 quiz 3;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?;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?;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?;Question;6;Which;of the following statements regarding a 30-year monthly payment amortized;mortgage with a nominal interest rate of 10% is CORRECT?;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;Question;8;Which;of the following statements is CORRECT?;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;Question;10;Which;of the following statements is CORRECT?;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.);Question;12;Which;of the following bank accounts has the highest effective annual return?;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?;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;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?;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;Question 18;Which;of the following bonds has the greatest interest rate price risk?;Question;19;Which;of the following statements is CORRECT?;Question;20;Which;of the following statements is CORRECT?;Question;21;A;15-year bond with a face value of \$1,000 currently sells for \$850. Which of the following statements is CORRECT?;Question;22;Which;of the following statements is CORRECT?;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?;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;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?;Question;26;Which;of the following statements is CORRECT?;Answer;Question;27;Which;of the following statements is CORRECT?;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?;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?;Question;30;Which;of the following statements is CORRECT?

Paper#51526 | Written in 18-Jul-2015

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