FIN 370 Week 3 Assignment Help | Quiz | University Of Phoenix
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- 02 Dec 2019
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FIN 370 Week 3 Assignment Help | Quiz | University Of Phoenix
1.
MC Qu. 7-33 A 4.5 percent
corporate coupon bond...
A 4.5 percent corporate
coupon bond is callable in five years for a call premium of one year of coupon
payments. Assuming a par value of $1,000, what is the price paid to the
bondholder if the issuer calls the bond?
Multiple Choice
o
$225
o
$1,000
o
$1,045
o
$45
2.
MC Qu. 7-5 Regarding a
bond's characteristics, which of...
Regarding a bond's
characteristics, which of the following is the principal loan amount that the
borrower must repay?
Multiple Choice
o
Time to maturity value
o
Maturity date
o
Call premium
o
Par or face value
3.
MC Qu. 7-124 A 2.95
percent TIPS has an...
A 2.95 percent TIPS has
an original reference CPI of 180.2. If the current CPI is 205.1, what is the
current interest payment and par value of the TIPS? (Assume semi-annual
interest payments and $1,000 par value.)
Multiple Choice
o
$1,138.18, $16.79, respectively
o
$1,000.00, $29.50, respectively
o
$1,138.18, $29.50, respectively
o
$878.60, $16.79, respectively
4.
MC Qu. 7-31 A 5.5 percent
corporate coupon bond is callable
A 5.5 percent corporate
coupon bond is callable in four years for a call premium of one year of coupon
payments. Assuming a par value of $1,000, what is the price paid to the
bondholder if the issuer calls the bond? (Assume annual interest payments.)
Multiple Choice
o
$55
o
$220
o
$1,000
o
$1,055
5.
MC Qu. 7-115 To increase
the liquidity for the...
To increase the liquidity
for the home mortgage market, Fannie Mae and Freddie Mac purchased home mortgages
from banks and other lenders. They combined the mortgages into diversified
portfolios of loans and issued:
Multiple Choice
o
current yield securities.
o
Treasury Inflation Protected Securities.
o
trust securities.
o
mortgage-backed securities.
6.
MC Qu. 7-16 Which of the
following is a...
Which of the following is
a true statement?
Multiple Choice
o
If interest rates fall, no bonds will
enjoy rising values.
o
If interest rates fall, corporate bonds
will have decreasing values.
o
If interest rates fall, U.S. Treasury
bonds will have decreasing values.
o
If interest rates fall, all bonds will
enjoy rising values.
MC Qu. 7-38 Calculate the
price of a zero...
Calculate the price of a
zero coupon bond that matures in 10 years if the market interest rate is 6 percent.
(Assume semi-annual compounding and $1,000 par value.)
Multiple Choice
o
$558.66
o
$1,000.00
o
$553.68
o
$940.00
8.
MC Qu. 7-78 Rank from
highest credit risk to...
Rank from highest credit risk to lowest credit risk the following bonds, with the same time to maturity, by their yield to maturity: Treasury bond with yield of 6.55 percent, IBM bond with yield of 10.95 percent, Trump Casino bond with a yield of 9.15 percent, and Banc Ono bond with a yield of 9.46 percent.
Multiple Choice
o
IBM, Banc Ono, Trump Casino, Treasury
o
Trump Casino, Treasury, Banc Ono, IBM
o
Treasury, Trump Casino, Banc Ono, IBM
o
Banc Ono, Trump Casino, IBM, Treasury
9.
MC Qu. 7-68 If Zeus
Energy bonds are upgraded...
If Zeus Energy bonds are
upgraded from BBB- to BBB+, which of the following statements is true?
Multiple Choice
o
The current bond price will decrease and
interest rates on new bonds issue will increase.
o
The current bond price will decrease.
o
Interest rates required on new bond issue
will increase.
o
The current bond price will increase and
interest rates on new bonds issue will decrease.
10.
MC Qu. 7-75 What is the
taxable equivalent yield...
What is the taxable
equivalent yield on a municipal bond with a yield to maturity of 4 percent for
an investor in the 28 percent tax bracket?
Multiple Choice
o
2.88 percent
o
4.51 percent
o
5.56 percent
o
3.87 percent
11.
MC Qu. 7-91 Which of
following are backed only...
Which of the following
are backed only by the reputation and financial stability of the corporation?
Multiple Choice
o
Debentures
o
None of the options
o
Unsecured bonds
o
Both debentures and unsecured bonds
12.
MC Qu. 8-78 GEN has 10
million shares outstanding...
GEN has 10 million shares
outstanding and a stock price of $89.25. What is GEN's market capitalization?
Multiple Choice
o
$892,500
o
$89,250,000
o
$892,500,000
o
$89,250,000,000
MC Qu. 08 The NASDAQ
Composite includes:
The NASDAQ Composite
includes:
Multiple Choice
o
30 of the largest (market capitalization)
and most active companies in the U.S. economy.
o
500 firms that are the largest in their
respective economic sectors.
o
500 firms that are the largest as ranked
by Fortune Magazine.
o
all of the stocks listed on the NASDAQ
Stock Exchange.
14.
MC Qu. 8-31 If a
preferred stock from Pfizer...
If a preferred stock from
Pfizer Inc. (PFE) pays $3.00 in annual dividends, and the required return on
the preferred stock is 7 percent, what's the value of the stock?
Multiple Choice
o
$21.00
o
$42.86
o
$0.43
o
$0.21
15.
MC Qu. 8-118 At your
full-service brokerage firm, it...
At your full-service
brokerage firm, it costs $125 per stock trade. How much money do you receive
after selling 200 shares of Time Warner, Inc. (TMX), which trades at $29.54?
Multiple Choice
o
$6,033.00
o
$5,783.00
o
$19,092.00
o
$5,908.00
16.
MC Qu. 8-5 Why is the ask
price higher...
Why is the ask price
higher than the bid price?
Multiple Choice
o
It represents the gain all participants
will achieve.
o
It represents the gain a market maker
achieves.
o
It represents the gain the stock seller
achieves.
o
It represents the gain the stock buy
achieves.
17.
MC Qu. 8-12 Which of
these are valued as...
Which of these are valued
as a special zero-growth case of the constant growth rate model?
Multiple Choice
o
Preferred stock
o
Common stock
o
Future stock prices
o
Future dividends
18.
MC Qu. 8-117 At your
discount brokerage firm, it costs...
At your discount
brokerage firm, it costs $10.50 per stock trade. How much money do you need to
buy 100 shares of Apple (AAPL), which trades at $202.64?
Multiple Choice
o
$20,274.50
o
$20,253.50
o
$21,314.00
o
$20,264.00
19.
MC Qu. 8-62 Ultra
Petroleum (UPL) has earnings per...
Ultra Petroleum (UPL) has
earnings per share of $1.75 and P/E of 42.56. What is the stock price?
Multiple Choice
o
$112.98
o
$85.68
o
$74.48
o
$76.68
20.
MC Qu. 8-16 Many companies
grow very fast at...
Many companies grow very
fast at first, but slower future growth can be expected. Such companies are
called:
Multiple Choice
o
Fortune 500 companies.
o
variable growth rate firms.
o
constant growth rate firms.
o
blue-chip companies.
USA 
India