Chapter 3 What Do Interest Rates Mean and What Is Their Role in Valuation?
3.1 Single Choice
michael jackson经典歌曲 1) A loan that requires the borrower to make the same payment every period until the maturity date is called a
A) simple loan.
B) fixed-payment loan.
C) discount loan.
D) same-payment loan.
E) none of the above.
2) A coupon bond pays the owner of the bond
商品流通企业会计实务>wikileakA) the same amount every month until maturity date.
B) a fixed interest payment every period and repays the face value at the maturity date.
C) the face value of the bond plus an interest payment once the maturity date has been reached.
D) the face value at the maturity date.
E) none of the above.
3) A bond's future payments are called its
A) cash flows.
B) maturity values.
C) discounted prent values.
D) yields to maturity.
4) A credit market instrument that pays the owner the face value of the curity at the mat
urity date and nothing prior to then is called a
live for todayA) simple loan.
B) fixed-payment loan.
C) coupon bond.
D) discount bond.
5) (I) A simple loan requires the borrower to repay the principal at the maturity date along with an interest payment. (II) A discount bond is bought at a price below its face value, and the face value is repaid at the maturity date.
A) (I) is true, (II) fal.
B) (I) is fal, (II) true.
C) Both are true.
D) Both are fal. problem怎么读
6) Which of the following are true of coupon bonds?
A) The owner of a coupon bond receives a fixed interest payment every year until the maturity date, when the face or par value is repaid.
B) U.S. Treasury bonds and notes are examples of coupon bonds.
C) Corporate bonds are examples of coupon bonds.
D) All of the above.
E) Only A and B of the above.
7) Which of the following are generally true of all bonds?
A) The longer a bond's maturity, the lower is the rate of return that occurs as a result of the increa in an interest rate. B) Even though a bond has a substantial initial interest rat
e, its return can turn out to be negative if interest rates ri. C) Prices and returns for long-term bonds are more volatile than tho for shorter-term bonds.
D) All of the above are true.
E) Only A and B of the above are true.
8) (I) A discount bond requires the borrower to repay the principal at the maturity date plus an interest payment. (II) A coupon bond pays the lender a fixed interest payment every year until the maturity date, when a specified final amount (face or par value) is repaid.
A) (I) is true, (II) fal.
B) (I) is fal, (II) true.
C) Both are true.
D) Both are fal.
9) If a $5,000 coupon bond has a coupon rate of 13 percent, then the coupon payment every year is
A) $650.
B) $1,300.
C) $130.
D) $13.
E) None of the above.
10) An $8,000 coupon bond with a $400 annual coupon payment has a coupon rate of
A) 5 percent.
B) 8 percent.
C) 10 percent.
D) 40 percent.
11) The concept of _________ is bad on the common-n notion that a dollar paid to you in the future is less valuable to you than a dollar today.
A) prent value
B) future value
C) interest
D) deflation
grind12) Dollars received in the future are worth _________ than dollars received today. The process of calculating what dollars received in the future are worth today is called _________
A) more; discounting.
B) less; discounting.
C) more; inflating.
D) less; inflating.
13) The process of calculating what dollars received in the future are worth today is called
A) calculating the yield to maturity.
B) discounting the future.
C) compounding the future.
D) compounding the prent.
14) With an interest rate of 5 percent, the prent value of $100 received one year from now is approximately
A) $100.
B) $105.
C) $95.
建筑师考试科目D) $90.
15) With an interest rate of 10 percent, the prent value of a curity that pays $1,100 next year and $1,460 four years from now is approximately
A) $1,000.
B) $2,000.
C) $2,560.
D) $3,000.
16) With an interest rate of 8 percent, the prent value of $100 received one year from now is approximately
A) $93.
B) $96.
C) $100.
D) $108.
17) With an interest rate of 6 percent, the prent value of $100 received one year from now is approximately
A) $106.
B) $100.
99宿舍六级成绩查询C) $94.
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D) $92.
18) The interest rate that equates the prent value of the cash flow received from a debt
instrument with its market price today is the
