Economics of Money, Banking, and Financial Markets, 11e, Global Edition (Mishkin) Chapter 4 The Meaning of Interest Rates
4.1 Measuring Interest Rates
1) 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
Answer: A
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2) The prent value of an expected future payment ________ as the interest rate increas.
A) falls
B) ris
C) is constant
D) is unaffected
Answer: A
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3) An increa in the time to the promid future payment ________ the prent value of the payment.
A) decreas
B) increas
C) has no effect on
D) is irrelevant to
Answer: A
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4) With an interest rate of 6 percent, the prent value of $100 next year is approximately
A) $106.
B) $100.
C) $94.
D) $92.
Answer: C
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5) What is the prent value of $500.00 to be paid in two years if the interest rate is 5 percent?
A) $453.51
B) $500.00
C) $476.25
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D) $550.00
Answer: A
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6) If a curity pays $55 in one year and $133 in three years, its prent value is $150 if the interest rate is
A) 5 percent.
B) 10 percent.
C) 12.5 percent.
D) 15 percent.
Answer: B
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7) To claim that a lottery winner who is to receive $1 million per year for twenty years has won $20 million ignores the process of
A) face value.
B) par value.
C) deflation.
D) discounting the future.
Answer: D
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8) A credit market instrument that provides the borrower with an amount of funds that must be repaid at the maturity date along with an interest payment is known as a
A) simple loan.
B) fixed-payment loan.
C) coupon bond.
D) discount bond.
Answer: A
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9) A credit market instrument that requires the borrower to make the same payment every period until the maturity date is known as a
A) simple loan.
B) fixed-payment loan.
C) coupon bond.
D) discount bond.
Answer: B
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10) Which of the following are TRUE of fixed payment loans?
A) The borrower repays both the principal and interest at the maturity date.
B) Installment loans and mortgages are frequently of the fixed payment type.
C) The borrower pays interest periodically and the principal at the maturity date.
D) Commercial loans to business are often of this type.
Answer: B
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11) A fully amortized loan is another name for
A) a simple loan.
B) a fixed-payment loan.
C) a commercial loan.
D) an uncured loan.
Answer: B
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12) A credit market instrument that pays the owner a fixed coupon payment every year until the maturity date and then repays the face value is called a
A) simple loan.
B) fixed-payment loan.
C) coupon bond.
D) discount bond.
Answer: C
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13) A ________ pays the owner a fixed coupon payment every year until the maturity date, when the ________ value is repaid.
A) coupon bond; discount
B) discount bond; discount
C) coupon bond; face
D) discount bond; face
Answer: C
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瀑布的形成14) The ________ is the final amount that will be paid to the holder of a coupon bond.
A) discount value
B) coupon value
C) face value
D) prent value
Answer: C
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15) When talking about a coupon bond, face value and ________ mean the same thing.
A) par value
B) coupon value
C) amortized value
D) discount value
Answer: A
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16) The dollar amount of the yearly coupon payment expresd as a percentage of the face value of the bond is called the bond's
A) coupon rate.
B) maturity rate.
C) face value rate.
D) payment rate.
Answer: A
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趣味地理17) The ________ is calculated by multiplying the coupon rate times the par value of the bond.
A) prent value
B) face value
C) coupon payment
D) maturity payment
Answer: C
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18) If a $1000 face value coupon bond has a coupon rate of 3.75 percent, then the coupon payment every year is
A) $37.50.
B) $3.75.
C) $375.00.
D) $13.75
Answer: A
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19) 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.
Answer: A
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20) An $8,000 coupon bond with a $400 coupon payment every year has a coupon rate of
A) 5 percent.
B) 8 percent.
C) 10 percent.
D) 40 percent.电脑怎么截图快捷键
Answer: A
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21) A $1000 face value coupon bond with a $60 coupon payment every year has a coupon rate of
A) .6 percent.
B) 5 percent.
C) 6 percent.
D) 10 percent.
Answer: C
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22) All of the following are examples of coupon bonds EXCEPT
A) corporate bonds.
B) U.S. Treasury bills.
C) U.S. Treasury notes.
D) U.S. Treasury bonds.
Answer: B
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23) A bond that is bought at a price below its face value and the face value is repaid at a maturity date is called a
A) simple loan.
B) fixed-payment loan.
C) coupon bond.
D) discount bond.
Answer: D小孩不吃饭怎么办
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24) A ________ is bought at a price below its face value, and the ________ value is repaid at the maturity date.
A) coupon bond; discount
B) discount bond; discount
C) coupon bond; face
D) discount bond; face
Answer: D
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25) A discount bond
A) pays the bondholder a fixed amount every period and the face value at maturity.
B) pays the bondholder the face value at maturity.
C) pays all interest and the face value at maturity.
D) pays the face value at maturity plus any capital gain.
Answer: B
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26) Examples of discount bonds include
A) U.S. Treasury bills.
B) corporate bonds.
C) U.S. Treasury notes.
D) municipal bonds.
Answer: A
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27) Which of the following are TRUE for discount bonds?
A) A discount bond is bought at par.
B) The purchar receives the face value of the bond at the maturity date.
C) U.S. Treasury bonds and notes are examples of discount bonds.
D) The purchar receives the par value at maturity plus any capital gains.
Answer: B
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28) The interest rate that equates the prent value of payments received from a debt instrument with its value today is the
A) simple interest rate.
B) current yield.
C) yield to maturity.
D) real interest rate.
Answer: C
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29) Economists consider the ________ to be the most accurate measure of interest rates.
A) simple interest rate.
B) current yield.
C) yield to maturity.
D) real interest rate.
Answer: C
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30) For simple loans, the simple interest rate is ________ the yield to maturity.
A) greater than
B) less than
C) equal to
D) not comparable to
Answer: C
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