货币金融学chapter4英文练习习题doc.docx

货币金融学chapter4英文练习习题doc.docx

《货币金融学chapter4英文练习习题doc.docx》由会员分享，可在线阅读，更多相关《货币金融学chapter4英文练习习题doc.docx（24页珍藏版）》请在冰豆网上搜索。

货币金融学chapter4英文练习习题doc

EconomicsofMoney,Banking,andFinancialMarkets,11e,GlobalEdition（Mishkin）Chapter4TheMeaningofInterestRates

4.1MeasuringInterestRates

1）Theconceptof________isbasedonthecommon-sensenotionthatadollarpaidtoyouinthefutureislessvaluabletoyouthanadollartoday.

A）presentvalue

B）futurevalue

C）interest

D）deflationAnswer:

A

AACSB:

ApplicationofKnowledge

2）Thepresentvalueofanexpectedfuturepayment________astheinterestrateincreases.A）falls

B）rises

C）isconstant

D）isunaffectedAnswer:

A

AACSB:

ReflectiveThinking

3）Anincreaseinthetimetothepromisedfuturepayment________thepresentvalueofthepayment.

A）decreasesB）increases

C）hasnoeffecton

D）isirrelevanttoAnswer:

A

AACSB:

ReflectiveThinking

4）Withaninterestrateof6percent,thepresentvalueof$100nextyearisapproximately

A）$106.

B）$100.

C）$94.

D）$92.Answer:

C

AACSB:

AnalyticalThinking

5）Whatisthepresentvalueof$500.00tobepaidintwoyearsiftheinterestrateis5percent?

A）$453.51

B）$500.00

C）$476.25

D）$550.00Answer:

A

AACSB:

AnalyticalThinking

6）Ifasecuritypays$55inoneyearand$133inthreeyears,itspresentvalueis$150iftheinterestrateis

A）5percent.

B）10percent.

C）12.5percent.

D）15percent.Answer:

B

AACSB:

AnalyticalThinking

7）Toclaimthatalotterywinnerwhoistoreceive$1millionperyearfortwentyyearshaswon$20millionignorestheprocessof

A）facevalue.

B）parvalue.

C）deflation.

D）discountingthefuture.

Answer:

D

AACSB:

AnalyticalThinking

8）Acreditmarketinstrumentthatprovidestheborrowerwithanamountoffundsthatmustberepaidatthematuritydatealongwithaninterestpaymentisknownasa

A）simpleloan.

B）fixed-paymentloan.C）couponbond.

D）discountbond.Answer:

A

AACSB:

ApplicationofKnowledge

9）Acreditmarketinstrumentthatrequirestheborrowertomakethesamepaymenteveryperiod

untilthematuritydateisknownasa

A）simpleloan.

B）fixed-paymentloan.

C）couponbond.

D）discountbond.Answer:

B

AACSB:

ApplicationofKnowledge

10）WhichofthefollowingareTRUEoffixedpaymentloans?

A）Theborrowerrepaysboththeprincipalandinterestatthematuritydate.

B）Installmentloansandmortgagesarefrequentlyofthefixedpaymenttype.

C）Theborrowerpaysinterestperiodicallyandtheprincipalatthematuritydate.

D）Commercialloanstobusinessesareoftenofthistype.

Answer:

B

AACSB:

ReflectiveThinking

11）Afullyamortizedloanisanothernamefor

A）asimpleloan.

B）afixed-paymentloan.

C）acommercialloan.

D）anunsecuredloan.Answer:

B

AACSB:

ApplicationofKnowledge

12）Acreditmarketinstrumentthatpaystheownerafixedcouponpaymenteveryyearuntilthematuritydateandthenrepaysthefacevalueiscalleda

A）simpleloan.

B）fixed-paymentloan.

C）couponbond.

D）discountbond.Answer:

C

AACSB:

ApplicationofKnowledge

13）A________paystheownerafixedcouponpaymenteveryyearuntilthematuritydate,whenthe________valueisrepaid.

A）couponbond;discountB）discountbond;discountC）couponbond;face

D）discountbond;faceAnswer:

C

AACSB:

AnalyticalThinking

14）The________isthefinalamountthatwillbepaidtotheholderofacouponbond.

A）discountvalue

B）couponvalue

C）facevalue

D）presentvalueAnswer:

C

AACSB:

ApplicationofKnowledge

15）Whentalkingaboutacouponbond,facevalueand________meanthesamething.A）parvalue

B）couponvalueC）amortizedvalueD）discountvalueAnswer:

A

AACSB:

ApplicationofKnowledge

16）Thedollaramountoftheyearlycouponpaymentexpressedasapercentageofthefacevalueofthebondiscalledthebond's

A）couponrate.

B）maturityrate.

C）facevaluerate.

D）paymentrate.Answer:

A

AACSB:

ApplicationofKnowledge

17）The________iscalculatedbymultiplyingthecouponratetimestheparvalueofthebond.

A）presentvalue

B）facevalue

C）couponpayment

D）maturitypaymentAnswer:

C

AACSB:

AnalyticalThinking

18）Ifa$1000facevaluecouponbondhasacouponrateof3.75percent,thenthecouponpaymenteveryyearis

A）$37.50.B）$3.75.C）$375.00.D）$13.75Answer:

A

AACSB:

AnalyticalThinking

19）Ifa$5,000couponbondhasacouponrateof13percent,thenthecouponpaymenteveryyearis

A）$650.B）$1,300.C）$130.D）$13.

Answer:

A

AACSB:

AnalyticalThinking

20）An$8,000couponbondwitha$400couponpaymenteveryyearhasacouponrateofA）5percent.

B）8percent.C）10percent.D）40percent.Answer:

A

AACSB:

AnalyticalThinking

21）A$1000facevaluecouponbondwitha$60couponpaymenteveryyearhasacouponrateof

A）.6percent.

B）5percent.

C）6percent.

D）10percent.Answer:

C

AACSB:

AnalyticalThinking

22）AllofthefollowingareexamplesofcouponbondsEXCEPTA）corporatebonds.

B）U.S.Treasurybills.

C）U.S.Treasurynotes.

D）U.S.Treasurybonds.

Answer:

B

AACSB:

AnalyticalThinking

23）Abondthatisboughtatapricebelowitsfacevalueandthefacevalueisrepaidatamaturitydateiscalleda

A）simpleloan.

B）fixed-paymentloan.C）couponbond.

D）discountbond.Answer:

D

AACSB:

ApplicationofKnowledge

24）A________isboughtatapricebelowitsfacevalue,andthe________valueisrepaidatthe

maturitydate.

A）couponbond;discount

B）discountbond;discount

C）couponbond;face

D）discountbond;faceAnswer:

D

AACSB:

AnalyticalThinking

25）Adiscountbond

A）paysthebondholderafixedamounteveryperiodandthefacevalueatmaturity.

B）paysthebondholderthefacevalueatmaturity.

C）paysallinterestandthefacevalueatmaturity.

D）paysthefacevalueatmaturityplusanycapitalgain.

Answer:

B

AACSB:

ReflectiveThinking

26）Examplesofdiscountbondsinclude

A）U.S.Treasurybills.

B）corporatebonds.

C）U.S.Treasurynotes.

D）municipalbonds.Answer:

A

AACSB:

AnalyticalThinking

27）WhichofthefollowingareTRUEfordiscountbonds?

A）Adiscountbondisboughtatpar.

B）Thepurchaserreceivesthefacevalueofthebondatthematuritydate.

C）U.S.Treasurybondsandnotesareexamplesofdiscountbonds.

D）Thepurchaserreceivestheparvalueatmaturityplusanycapitalgains.

Answer:

B

AACSB:

ReflectiveThinking

28）Theinterestratethatequatesthepresentvalueofpaymentsreceivedfromadebtinstrumentwithitsvaluetodayisthe

A）simpleinterestrate.B）currentyield.

C）yieldtomaturity.D）realinterestrate.Answer:

C

AACSB:

ApplicationofKnowledge

29）Economistsconsiderthe________tobethemostaccuratemeasureofinterestrates.

A）simpleinterestrate.

B）currentyield.

C）yieldtomaturity.

D）realinterestrate.Answer:

C

AACSB:

ReflectiveThinking

30）Forsimpleloans,thesimpleinterestrateis________theyieldtomaturity.A）greaterthan

B）lessthanC）equalto

D）notcomparabletoAnswer:

C

AACSB:

ApplicationofKnowledge

31）Iftheamountpayableintwoyearsis$2420forasimpleloanat10percentinterest,theloanamountis

A）$1000.

B）$1210.

C）$2000.

D）$2200.Answer:

C

AACSB:

AnalyticalThinking

32）Fora3-yearsimpleloanof$10,000at10percent,theamounttoberepaidis

A）$10,030.

B）$10,300.

C）$13,000.

D）$13,310.Answer:

D

AACSB:

AnalyticalThinking

33）If$22,050istheamountpayableintwoyearsfora$20,000simpleloanmadetoday,theinterestrateis

A）5percent.B）10percent.C）22percent.D）25percent.Answer:

A

AACSB:

AnalyticalThinking

34）Ifasecuritypays$110nextyearand$121theyearafterthat,whatisitsyieldtomaturityifitsellsfor$200?

A）9percentB）10percentC）11percentD）12percent

Answer:

B

AACSB:

AnalyticalThinking

35）Thepresentvalueofafixed-paymentloaniscalculatedasthe________ofthepresentvalueofallcashflowpayments.

A）sum

B）differenceC）multipleD）logAnswer:

A

AACSB:

AnalyticalThinking

36）WhichofthefollowingareTRUEforacouponbond?

A）Whenthecouponbondispricedatitsfacevalue,theyieldtomaturityequalsthecouponrate.

B）Thepriceofacouponbondandtheyieldtomaturityarepositivelyrelated.

C）Theyieldtomaturityisgreaterthanthecouponratewhenthebondpriceisabovetheparvalue.

D）Theyieldislessthanthecouponratewhenthebondpriceisbelowtheparvalue.

Answer:

A

AACSB:

ReflectiveThinking

37）The________ofacouponbondandtheyieldtomaturityareinverselyrelated.

A）price

B）parvalue

C）maturitydate

D）termAnswer:

A

AACSB:

ReflectiveThinking

38）Thepriceofacouponbondandtheyieldtomaturityare________related;thatis,astheyieldtomaturity________,thepriceofthebond________.

A）positively;rises;risesB）negatively;falls;fallsC）positively;rises;fallsD）negatively;rises;fallsAnswer:

D

AACSB:

ReflectiveThinking

39）Theyieldtomaturityis________thanthe________ratewhenthebondpriceis________

itsfacevalue.

A）greater;coupon;aboveB）greater;coupon;belowC）greater;perpetuity;aboveD）less;perpetuity;below

Answer:

B

AACSB:

ReflectiveThinking

40）The________isbelowthecouponratewhenthebondpriceis________itsparvalue.A）yieldtomaturity;above

B）yieldtomaturity;belowC）discountrate;aboveD）discountrate;belowAnswer:

A

AACSB:

ReflectiveThinking

41）A$10,0008percentcouponbondthatsellsfor$10,000hasayieldtomaturityof

A）8percent.

B）10percent.

C）12percent.

D）14percent.Answer:

A

AACSB:

AnalyticalThinking

42）Whichofthefollowing$1,000face-valuesecuritieshasthehighestyieldtomaturity?

A）a5percentcouponbondsellingfor$1,000

B）a10percentcouponbondsellingfor$1,000

C）a12percentcouponbondsellingfor$1,000

D）a12percentcouponbondsellingfor$1,100

Answer:

C

AACSB: