第三章利率与估值英文习题与答案Word文档下载推荐.docx

1、C） discounted present values. D） yields to maturity. 4） A credit market instrument that pays the owner the face value of the security at the maturity date and nothing prior to then is called a C） coupon bond. D） discount bond. 5） （I） A simple loan requires the borrower to repay the principal at the

2、maturity date along with an interest payment. （II） A discount bond is bought at a price below its face value, and the face value is repaid at the maturity date. A） （I） is true, （II） false. B） （I） is false, （II） true. C） Both are true. D） Both are false. 6） Which of the following are true of coupon b

3、onds?A） The owner of a coupon bond receives a fixed interest payment every year until the maturity date, when the face or par value is repaid. B） U.S. Treasury bonds and notes are examples of coupon bonds. C） Corporate bonds are examples of coupon bonds. D） All of the above. E） Only A and B of the a

4、bove. 7） Which of the following are generally true of all bonds?A） The longer a bonds maturity, the lower is the rate of return that occurs as a result of the increase in an interest rate. B） Even though a bond has a substantial initial interest rate, its return can turn out to be negative if intere

5、st rates rise. C） Prices and returns for long-term bonds are more volatile than those for shorter-term bonds. D） All of the above are true. E） Only A and B of the above are true. 8） （I） A discount bond requires the borrower to repay the principal at the maturity date plus an interest payment. （II） A

6、 coupon bond pays the lender a fixed interest payment every year until the maturity date, when a specified final amount （face or par value） is repaid. 9） If a $5,000 coupon bond has a coupon rate of 13 percent, then the coupon payment every year is A） $650. B） $1,300. C） $130. D） $13. E） None of the

7、 above. 10） An $8,000 coupon bond with a $400 annual coupon payment has a coupon rate of A） 5 percent. B） 8 percent. C） 10 percent. D） 40 percent. 11） The concept of _ is based on the common-sense notion that a dollar paid to you in the future is less valuable to you than a dollar today. A） present

8、value B） future value C） interest D） deflation 12） Dollars received in the future are worth _ than dollars received today. The process of calculating what dollars received in the future are worth today is called _ A） more; discounting. B） less;C） more; inflating. D） less;13） The process of calculati

9、ng what dollars received in the future are worth today is called A） calculating the yield to maturity. B） discounting the future. C） compounding the future. D） compounding the present. 14） With an interest rate of 5 percent, the present value of $100 received one year from now is approximately A） $1

10、00. B） $105. C） $95. D） $90. 15） With an interest rate of 10 percent, the present value of a security that pays $1,100 next year and $1,460 four years from now is approximately A） $1,000. B） $2,000. C） $2,560. D） $3,000. 16） With an interest rate of 8 percent, the present value of $100 received one

11、year from now is approximately A） $93. B） $96. C） $100. D） $108. 17） With an interest rate of 6 percent, the present value of $100 received one year from now is approximately A） $106. B） $100. C） $94. D） $92. 18） The interest rate that equates the present value of the cash flow received from a debt

12、instrument with its market price today is the A） simple interest rate. B） discount rate. C） yield to maturity. D） real interest rate. 19） The interest rate that financial economists consider to be the most accurate measure is the A） current yield. B） yield to maturity. C） yield on a discount basis.

13、D） coupon rate. 20） Financial economists consider the _ to be the most accurate measure of interest rates. A） simple interest rate B） discount rate C） yield to maturity D） real interest rate 21） For a simple loan, the simple interest rate equals the A） real interest rate. B） nominal interest rate. C

14、） current yield. D） yield to maturity. 22） For simple loans, the simple interest rate is _ the yield to maturity. A） greater than B） less than C） equal to D） not comparable to 23） The yield to maturity of a one-year, simple loan of $500 that requires an interest payment of $40 is C） 12 percent. D） 1

15、2.5 percent. 24） The yield to maturity of a one-year, simple loan of $400 that requires an interest payment of $50 is 25） A $10,000, 8 percent coupon bond that sells for $10,000 has a yield to maturity of A） 8 percent. B） 10 percent. D） 14 percent. 26） Which of the following $1,000 face value securi

16、ties has the highest yield to maturity?A） A 5 percent coupon bond selling for $1,000 B） A 10 percent coupon bond selling for $1,000 C） A 12 percent coupon bond selling for $1,000 D） A 12 percent coupon bond selling for $1,100 27） Which of the following $1,000 face value securities has the highest yi

17、eld to maturity?C） A 15 percent coupon bond selling for $1,000 D） A 15 percent coupon bond selling for $900 28） Which of the following are true for a coupon bond?A） When the coupon bond is priced at its face value, the yield to maturity equals the coupon rate. B） The price of a coupon bond and the y

18、ield to maturity are negatively related. C） The yield to maturity is greater than the coupon rate when the bond price is below the par value. 29） Which of the following are true for a coupon bond?C） The yield to maturity is greater than the coupon rate when the bond price is above the par value. 30）

19、 Which of the following are true for a coupon bond?B） The price of a coupon bond and the yield to maturity are positively related. 31） A consol bond is a bond that A） pays interest annually and its face value at maturity. B） pays interest in perpetuity and never matures. C） pays no interest but pays

20、 face value at maturity. D） rises in value as its yield to maturity rises. 32） The yield to maturity on a consol bond that pays $100 yearly and sells for $500 is C） 12.5 percent. D） 20 percent. E） 25 percent. 33） The yield to maturity on a consol bond that pays $200 yearly and sells for $1000 is C）

21、20 percent. D） 25 percent. 34） A frequently used approximation for the yield to maturity on a long-term bond is the A） coupon rate. B） current yield. C） cash flow interest rate. 35） The current yield on a coupon bond is the bonds _ divided by its _. A） annual coupon payment; price B） annual coupon p

22、ayment; face value C） annual return;D） annual return;36） When a bonds price falls, its yield to maturity _ and its current yield _. A） falls; falls B） rises; rises C） falls;D） rises;37） The yield to maturity for a one-year discount bond equals A） the increase in price over the year, divided by the i

23、nitial price. B） the increase in price over the year, divided by the face value. C） the increase in price over the year, divided by the interest rate. D） none of the above. 38） If a $10,000 face value discount bond maturing in one year is selling for $8,000, then its yield to maturity is A） 10 perce

24、nt. B） 20 percent. C） 25 percent. 39） If a $10,000 face value discount bond maturing in one year is selling for $9,000, then its yield to maturity is A） 9 percent. C） 11 percent. D） 12 percent. 40） If a $10,000 face value discount bond maturing in one year is selling for $5,000, then its yield to ma

25、turity is C） 50 percent. D） 100 percent. 41） If a $5,000 face value discount bond maturing in one year is selling for $5,000, then its yield to maturity is A） 0 percent. B） 5 percent. 42） The Fisher equation states that A） the nominal interest rate equals the real interest rate plus the expected rate of inflation. B） the real interest rate equals the nominal interest rate less the ex