Unformatted text preview:

ExamName___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) With an interest rate of 6 percent, the present value of $100 next year is approximately 1) _______ A) $106. B) $100. C) $94. D) $92. 2) The ________ is the final amount that will be paid to the holder of a coupon bond. 2) _______ A) face value B) present value C) discount value D) coupon value 3) If a $5,000 coupon bond has a coupon rate of 13 percent, then the coupon payment every year is 3) _______ A) $13. B) $1,300. C) $130. D) $650. 4) Examples of discount bonds include4) _______ A) corporate bonds. B) U.S. Treasury notes. C) U.S. Treasury bills. D) municipal bonds. 5) The ________ of a coupon bond and the yield to maturity are inversely related. 5) _______ A) maturity date B) price C) term D) par value 6) The yield to maturity is ________ than the ________ rate when the bond price is ________ its face value. 6) _______ A) greater; coupon; below B) less; perpetuity; below C) greater; perpetuity; above D) greater; coupon; above 7) Which of the following $1,000 face-value securities has the lowest yield to maturity? 7) _______ A) A 15 percent coupon bond selling for $900 B) A 5 percent coupon bond selling for $1,000 C) A 10 percent coupon bond selling for $1,000 D) A 15 percent coupon bond selling for $1,0008) A coupon bond that has no maturity date and no repayment of principal is called a 8) _______ A) Treasury bill. B) Treasury note. C) cabinet. D) consol. 9) If a perpetuity has a price of $500 and an annual interest payment of $25, the interest rate is 9) _______ A) 2.5 percent. B) 5 percent. C) 7.5 percent. D) 10 percent. 10) If a $10,000 face-value discount bond maturing in one year is selling for $5,000, then its yield to maturity is 10) ______ A) 5 percent. B) 10 percent. C) 50 percent. D) 100 percent. 1) C 2) A3) D 4) C 5) B 6) A 7) B 8) D 9) B 10)


View Full Document

Mizzou ECONOM 3229 - Exam

Download Exam
Our administrator received your request to download this document. We will send you the file to your email shortly.
Loading Unlocking...
Login

Join to view Exam and access 3M+ class-specific study document.

or
We will never post anything without your permission.
Don't have an account?
Sign Up

Join to view Exam 2 2 and access 3M+ class-specific study document.

or

By creating an account you agree to our Privacy Policy and Terms Of Use

Already a member?