第三章利率与估值英文习题与答案Word文档下载推荐.docx

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C）discountedpresentvalues.

D）yieldstomaturity.

4）Acreditmarketinstrumentthatpaystheownerthefacevalueofthesecurityatthematuritydateandnothingpriortotheniscalleda

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.

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;

C）more;

inflating.

D）less;

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

C）12percent.

D）12.5percent.

24）Theyieldtomaturityofaone-year,simpleloanof$400thatrequiresaninterestpaymentof$50is

25）A$10,000,8percentcouponbondthatsellsfor$10,000hasayieldtomaturityof

A）8percent.

B）10percent.

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?

C）A15percentcouponbondsellingfor$1,000

D）A15percentcouponbondsellingfor$900

28）Whichofthefollowingaretrueforacouponbond?

A）Whenthecouponbondispricedatitsfacevalue,theyieldtomaturityequalsthecouponrate.

B）Thepriceofacouponbondandtheyieldtomaturityarenegativelyrelated.

C）Theyieldtomaturityisgreaterthanthecouponratewhenthebondpriceisbelowtheparvalue.

29）Whichofthefollowingaretrueforacouponbond?

C）Theyieldtomaturityisgreaterthanthecouponratewhenthebondpriceisabovetheparvalue.

30）Whichofthefollowingaretrueforacouponbond?

B）Thepriceofacouponbondandtheyieldtomaturityarepositivelyrelated.

31）Aconsolbondisabondthat

A）paysinterestannuallyanditsfacevalueatmaturity.

B）paysinterestinperpetuityandnevermatures.

C）paysnointerestbutpaysfacevalueatmaturity.

D）risesinvalueasitsyieldtomaturityrises.

32）Theyieldtomaturityonaconsolbondthatpays$100yearlyandsellsfor$500is

C）12.5percent.

D）20percent.

E）25percent.

33）Theyieldtomaturityonaconsolbondthatpays$200yearlyandsellsfor$1000is

C）20percent.

D）25percent.

34）Afrequentlyusedapproximationfortheyieldtomaturityonalong-termbondisthe

A）couponrate.

B）currentyield.

C）cashflowinterestrate.

35）Thecurrentyieldonacouponbondisthebond'

s_________dividedbyits_________.

A）annualcouponpayment;

price

B）annualcouponpayment;

facevalue

C）annualreturn;

D）annualreturn;

36）Whenabond'

spricefalls,itsyieldtomaturity_________anditscurrentyield_________.

A）falls;

falls

B）rises;

rises

C）falls;

D）rises;

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.

39）Ifa$10,000facevaluediscountbondmaturinginoneyearissellingfor$9,000,thenitsyieldtomaturityis

A）9percent.

C）11percent.

D）12percent.

40）Ifa$10,000facevaluediscountbondmaturinginoneyearissellingfor$5,000,thenitsyieldtomaturityis

C）50percent.

D）100percent.

41）Ifa$5,000facevaluediscountbondmaturinginoneyearissellingfor$5,000,thenitsyieldtomaturityis

A）0percent.

B）5percent.

42）TheFisherequationstatesthat

A）thenominalinterestrateequalstherealinterestrateplustheexpectedrateofinflation.

B）therealinterestrateequalsthenominalinterestratelesstheex