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第三章利率与估值英文习题及答案doc
Chapter3WhatDoInterestRatesMeanandWhatIsTheirRoleinValuation?
3.1SingleChoice
1）Aloanthatrequirestheborrowertomakethesamepaymenteveryperioduntilthematuritydateiscalleda
A）simpleloan.
B）fixed-paymentloan.
C）discountloan.
D）same-paymentloan.
E）noneoftheabove.
2）Acouponbondpaystheownerofthebond
A）thesameamounteverymonthuntilmaturitydate.
B）afixedinterestpaymenteveryperiodandrepaysthefacevalueatthematuritydate.
C）thefacevalueofthebondplusaninterestpaymentoncethematuritydatehasbeenreached.
D）thefacevalueatthematuritydate.
E）noneoftheabove.
3）Abond'sfuturepaymentsarecalledits
A）cashflows.
B）maturityvalues.
C）discountedpresentvalues.
D）yieldstomaturity.
4）Acreditmarketinstrumentthatpaystheownerthefacevalueofthesecurityatthematuritydateandnothingpriortotheniscalleda
A）simpleloan.
B）fixed-paymentloan.
C）couponbond.
D）discountbond.
5）（I）Asimpleloanrequirestheborrowertorepaytheprincipalatthematuritydatealongwithaninterestpayment.（II）Adiscountbondisboughtatapricebelowitsfacevalue,andthefacevalueisrepaidatthematuritydate.
A）（I）istrue,（II）false.
B）（I）isfalse,（II）true.
C）Botharetrue.
D）Botharefalse.
6）Whichofthefollowingaretrueofcouponbonds?
A）Theownerofacouponbondreceivesafixedinterestpaymenteveryyearuntilthematuritydate,whenthefaceorparvalueisrepaid.
B）U.S.Treasurybondsandnotesareexamplesofcouponbonds.
C）Corporatebondsareexamplesofcouponbonds.
D）Alloftheabove.
E）OnlyAandBoftheabove.
7）Whichofthefollowingaregenerallytrueofallbonds?
A）Thelongerabond'smaturity,theloweristherateofreturnthatoccursasaresultoftheincreaseinaninterestrate.B）Eventhoughabondhasasubstantialinitialinterestrate,itsreturncanturnouttobenegativeifinterestratesrise.C）Pricesandreturnsforlong-termbondsaremorevolatilethanthoseforshorter-termbonds.
D）Alloftheabovearetrue.
E）OnlyAandBoftheabovearetrue.
8）（I）Adiscountbondrequirestheborrowertorepaytheprincipalatthematuritydateplusaninterestpayment.（II）Acouponbondpaysthelenderafixedinterestpaymenteveryyearuntilthematuritydate,whenaspecifiedfinalamount（faceorparvalue）isrepaid.
A）（I）istrue,（II）false.
B）（I）isfalse,（II）true.
C）Botharetrue.
D）Botharefalse.
9）Ifa$5,000couponbondhasacouponrateof13percent,thenthecouponpaymenteveryyearis
A）$650.
B）$1,300.
C）$130.
D）$13.
E）Noneoftheabove.
10）An$8,000couponbondwitha$400annualcouponpaymenthasacouponrateof
A）5percent.
B）8percent.
C）10percent.
D）40percent.
11）Theconceptof_________isbasedonthecommon-sensenotionthatadollarpaidtoyouinthefutureislessvaluabletoyouthanadollartoday.
A）presentvalue
B）futurevalue
C）interest
D）deflation
12）Dollarsreceivedinthefutureareworth_________thandollarsreceivedtoday.Theprocessofcalculatingwhatdollarsreceivedinthefutureareworthtodayiscalled_________
A）more;discounting.
B）less;discounting.
C）more;inflating.
D）less;inflating.
13）Theprocessofcalculatingwhatdollarsreceivedinthefutureareworthtodayiscalled
A）calculatingtheyieldtomaturity.
B）discountingthefuture.
C）compoundingthefuture.
D）compoundingthepresent.
14）Withaninterestrateof5percent,thepresentvalueof$100receivedoneyearfromnowisapproximately
A）$100.
B）$105.
C）$95.
D）$90.
15）Withaninterestrateof10percent,thepresentvalueofasecuritythatpays$1,100nextyearand$1,460fouryearsfromnowisapproximately
A）$1,000.
B）$2,000.
C）$2,560.
D）$3,000.
16）Withaninterestrateof8percent,thepresentvalueof$100receivedoneyearfromnowisapproximately
A）$93.
B）$96.
C）$100.
D）$108.
17）Withaninterestrateof6percent,thepresentvalueof$100receivedoneyearfromnowisapproximately
A）$106.
B）$100.
C）$94.
D）$92.
18）Theinterestratethatequatesthepresentvalueofthecashflowreceivedfromadebtinstrumentwithitsmarketpricetodayisthe
A）simpleinterestrate.
B）discountrate.
C）yieldtomaturity.
D）realinterestrate.
19）Theinterestratethatfinancialeconomistsconsidertobethemostaccuratemeasureisthe
A）currentyield.
B）yieldtomaturity.
C）yieldonadiscountbasis.
D）couponrate.
20）Financialeconomistsconsiderthe_________tobethemostaccuratemeasureofinterestrates.
A）simpleinterestrate
B）discountrate
C）yieldtomaturity
D）realinterestrate
21）Forasimpleloan,thesimpleinterestrateequalsthe
A）realinterestrate.
B）nominalinterestrate.
C）currentyield.
D）yieldtomaturity.
22）Forsimpleloans,thesimpleinterestrateis_________theyieldtomaturity.
A）greaterthan
B）lessthan
C）equalto
D）notcomparableto
23）Theyieldtomaturityofaone-year,simpleloanof$500thatrequiresaninterestpaymentof$40is
A）5percent.
B）8percent.
C）12percent.
D）12.5percent.
24）Theyieldtomaturityofaone-year,simpleloanof$400thatrequiresaninterestpaymentof$50is
A）5percent.
B）8percent.
C）12percent.
D）12.5percent.
25）A$10,000,8percentcouponbondthatsellsfor$10,000hasayieldtomaturityof
A）8percent.
B）10percent.
C）12percent.
D）14percent.
26）Whichofthefollowing$1,000facevaluesecuritieshasthehighestyieldtomaturity?
A）A5percentcouponbondsellingfor$1,000
B）A10percentcouponbondsellingfor$1,000
C）A12percentcouponbondsellingfor$1,000
D）A12percentcouponbondsellingfor$1,100
27）Whichofthefollowing$1,000facevaluesecuritieshasthehighestyieldtomaturity?
A）A5percentcouponbondsellingfor$1,000
B）A10percentcouponbondsellingfor$1,000
C）A15percentcouponbondsellingfor$1,000
D）A15percentcouponbondsellingfor$900
28）Whichofthefollowingaretrueforacouponbond?
A）Whenthecouponbondispricedatitsfacevalue,theyieldtomaturityequalsthecouponrate.
B）Thepriceofacouponbondandtheyieldtomaturityarenegativelyrelated.
C）Theyieldtomaturityisgreaterthanthecouponratewhenthebondpriceisbelowtheparvalue.
D）Alloftheabovearetrue.
E）OnlyAandBoftheabovearetrue.
29）Whichofthefollowingaretrueforacouponbond?
A）Whenthecouponbondispricedatitsfacevalue,theyieldtomaturityequalsthecouponrate.
B）Thepriceofacouponbondandtheyieldtomaturityarenegativelyrelated.
C）Theyieldtomaturityisgreaterthanthecouponratewhenthebondpriceisabovetheparvalue.
D）Alloftheabovearetrue.
E）OnlyAandBoftheabovearetrue.
30）Whichofthefollowingaretrueforacouponbond?
A）Whenthecouponbondispricedatitsfacevalue,theyieldtomaturityequalsthecouponrate.
B）Thepriceofacouponbondandtheyieldtomaturityarepositivelyrelated.
C）Theyieldtomaturityisgreaterthanthecouponratewhenthebondpriceisabovetheparvalue.
D）Alloftheabovearetrue.
E）OnlyAandBoftheabovearetrue.
31）Aconsolbondisabondthat
A）paysinterestannuallyanditsfacevalueatmaturity.
B）paysinterestinperpetuityandnevermatures.
C）paysnointerestbutpaysfacevalueatmaturity.
D）risesinvalueasitsyieldtomaturityrises.
32）Theyieldtomaturityonaconsolbondthatpays$100yearlyandsellsfor$500is
A）5percent.
B）10percent.
C）12.5percent.
D）20percent.
E）25percent.
33）Theyieldtomaturityonaconsolbondthatpays$200yearlyandsellsfor$1000is
A）5percent.
B）10percent.
C）20percent.
D）25percent.
34）Afrequentlyusedapproximationfortheyieldtomaturityonalong-termbondisthe
A）couponrate.
B）currentyield.
C）cashflowinterestrate.
D）realinterestrate.
35）Thecurrentyieldonacouponbondisthebond's_________dividedbyits_________.
A）annualcouponpayment;price
B）annualcouponpayment;facevalue
C）annualreturn;price
D）annualreturn;facevalue
36）Whenabond'spricefalls,itsyieldtomaturity_________anditscurrentyield_________.
A）falls;falls
B）rises;rises
C）falls;rises
D）rises;falls
37）Theyieldtomaturityforaone-yeardiscountbondequals
A）theincreaseinpriceovertheyear,dividedbytheinitialprice.
B）theincreaseinpriceovertheyear,dividedbythefacevalue.
C）theincreaseinpriceovertheyear,dividedbytheinterestrate.
D）noneoftheabove.
38）Ifa$10,000facevaluediscountbondmaturinginoneyearissellingfor$8,000,thenitsyieldtomaturityis
A）10percent.
B）20percent.
C）25percent.
D）40percent.
39）Ifa$10,000facevaluediscountbondmaturinginoneyearissellingfor$9,000,thenitsyieldtomaturityis
A）9percent.
B）10percent.
C）11percent.
D）12percent.
40）Ifa$10,000facevaluediscountbondmaturinginoneyearissellingfor$5,000,thenitsyieldtomaturityis
A）5percent.
B）10percent.
C）50percent.
D）100percent.
41）Ifa$5,000facevaluediscountbondmaturinginoneyearissellingfor$5,000,thenitsyieldtomaturityis
A）0percent.
B）5percent.
C）10percent.
D）20percent.
42）TheFisherequationstatesthat
A）thenominalinterestrateequalstherealinterestrateplustheexpectedrateofinflation.
B）therealinterestrateequalsthenominalinterestratelessthe
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