货币金融学chapter4英文习题0001.docx

1、货币金融学chapter4英文习题0001Economics of Money, Banking, and Financial Markets, 11e, Global Edition (Mishkin) Chapter 4 The Meaning of Interest RatesMeasuring Interest Rates1)The concept of is based on the common-sense notion that a dollar paidto you in the future is less valuable to you than a dollar toda

2、y.A)present valueB)future valueC)interestD)deflationAnswer: AAACSB: Application of Knowledge2)The present value of an expected future payment as the interest rateincreases.A)fallsB)risesC)is constantD)is unaffectedAnswer: AAACSB: Reflective Thinking3)An increase in the time to the promised future pa

3、yment the present valueof the payment.A)decreasesB)increasesC)has no effect onD)is irrelevant to Answer: AAACSB: Reflective Thinking4)With an interest rate of 6 percent, the present value of $100 next year is approximatelyA)$106.B)$100.C)$94.D)$92.Answer: CAACSB: Analytical Thinking5)What is the pre

4、sent value of $ to be paid in two years if the interest rate is5 percent?A)$B)$C)$D)$Answer: AAACSB: Analytical Thinking6)If a security pays $55 in one year and $133 in three years, its present value is $150 if the interest rate isA)5 percent.B)10 percent.C)percent.D)15 percent. Answer: B AACSB: Ana

5、lytical Thinking7)To claim that a lottery winner who is to receive $1 million per year for twenty years has won $20 million ignores the process ofA)face value.B)par value.C)deflation.D)discounting the future.Answer: DAACSB: Analytical Thinking8)A credit market instrument that provides the borrower w

6、ith an amount of funds that must be repaid at the maturity date along with an interest payment is known as aA)simple loan.B)fixed-payment loan.C)coupon bond.D)discount bond. Answer: AAACSB: Application of Knowledge9)A credit market instrument that requires the borrower to make the same paymentevery

7、period until the maturity date is known as aA)simple loan.B)fixed-payment loan.C)coupon bond.D)discount bond.Answer: BAACSB: Application of Knowledge10)Which of the following are TRUE of fixed payment loans?A)The borrower repays both the principal and interest at the maturity date.B)Installment loan

8、s and mortgages are frequently of the fixed payment type.C)date.The borrower pays interest periodically and the principal at the maturityD)Commercial loans to businesses are often of this type.Answer: BAACSB: Reflective Thinking11)A fully amortized loan is another name forA)a simple loan.B)a fixed-p

9、ayment loan.C)a commercial loan.D)an unsecured loan.Answer: BAACSB: Application of Knowledge12)A credit market instrument that pays the owner a fixed coupon payment every year until the maturity date and then repays the face value is called aA)simple loan.B)fixed-payment loan.C)coupon bond.D)discoun

10、t bond. Answer: CAACSB: Application of Knowledge13)A pays the owner a fixed coupon payment every year until the maturitydate, when the value is repaid.A)coupon bond; discountB)discount bond; discountC)coupon bond; faceD)discount bond; faceAnswer: CAACSB: Analytical Thinking14)The is the final amount

11、 that will be paid to the holder of a couponbond.A)discount valueB)coupon valueC)face valueD)present value Answer: C AACSB: Application of Knowledge15)Whentalking about a coupon bond, face value and meanthe same thing.A)par valueB)coupon valueC)amortized valueD)discount value Answer: A AACSB: Applic

12、ation of Knowledge16)The dollar amount of the yearly coupon payment expressed as a percentage of the face value of the bond is called the bondsA)coupon rate.B)maturity rate.C)face value rate.D)payment rate. Answer: AAACSB: Application of Knowledge17)The is calculated by multiplying the coupon rate t

13、imes the par valueof the bond.A)present valueB)face valueC)coupon paymentD)maturity payment Answer: CAACSB: Analytical Thinking18)If a $1000 face value coupon bond has a coupon rate of percent, then the coupon payment every year isA)$.B)$.C)$.D)$ Answer: AAACSB: Analytical Thinking19)If a $5,000 cou

14、pon bond has a coupon rate of 13 percent, then the coupon payment every year isA)$650.B)$1,300.C)$130.D)$13. Answer: AAACSB: Analytical Thinking20)An $8,000 coupon bond with a $400 coupon payment every year has a coupon rate ofA)5 percent.B)8 percent.C)10 percent.D)40 percent. Answer: AAACSB: Analyt

15、ical Thinking21)A $1000 face value coupon bond with a $60 coupon payment every year has a coupon rate ofA).6 percent.B)5 percent.C)6 percent.D)10 percent.Answer: C AACSB: Analytical Thinking22)All of the following are examples of coupon bonds EXCEPTA)corporate bonds.B). Treasury bills.C). Treasury n

16、otes.D). Treasury bonds. Answer: B AACSB: Analytical Thinking23)A bond that is bought at a price below its face value and the face value is repaid at a maturity date is called aA)simple loan.B)fixed-payment loan.C)coupon bond.D)discount bond. Answer: D AACSB: Application of Knowledge24)A is bought a

17、t a price below its face value, and the valueis repaid at the maturity date.A)coupon bond; discountB)discount bond; discountC)coupon bond; faceD)discount bond; face Answer: D AACSB: Analytical Thinking25)A discount bondA)pays the bondholder a fixed amount every period and the face value at maturity.

18、B)pays the bondholder the face value at maturity.C)pays all interest and the face value at maturity.D)pays the face value at maturity plus any capital gain. Answer: BAACSB: Reflective Thinking26)Examples of discount bonds includeA). Treasury bills.B)corporate bonds.C). Treasury notes.D)municipal bon

19、ds. Answer: AAACSB: Analytical Thinking27)Which of the following are TRUE for discount bonds?A)A discount bond is bought at par.B)The purchaser receives the face value of the bond at the maturity date.C). Treasury bonds and notes are examples of discount bonds.D)The purchaser receives the par value

20、at maturity plus any capital gains. Answer: BAACSB: Reflective Thinking28)The interest rate that equates the present value of payments received from a debt instrument with its value today is theA)simple interest rate.B)current yield.C)yield to maturity.D)real interest rate. Answer: CAACSB: Applicati

21、on of Knowledge29)Economists consider the to be the most accurate measure of interestrates.A)simple interest rate.B)current yield.C)yield to maturity.D)real interest rate. Answer: CAACSB: Reflective Thinking30)For simple loans, the simple interest rate is the yield to maturity.A)greater thanB)less t

22、hanC)equal toD)not comparable to Answer: CAACSB: Application of Knowledge31)If the amount payable in two years is $2420 for a simple loan at 10 percent interest, the loan amount isA)$1000.B)$1210.C)$2000.D)$2200. Answer: CAACSB: Analytical Thinking32)For a 3-year simple loan of $10,000 at 10 percent

23、, the amount to be repaid isA)$10,030.B)$10,300.C)$13,000.D)$13,310. Answer: D AACSB: Analytical Thinking33)If $22,050 is the amount payable in two years for a $20,000 simple loan made today, the interest rate isA)5 percent.B)10 percent.C)22 percent.D)25 percent. Answer: A AACSB: Analytical Thinking

24、34)If a security pays $110 next year and $121 the year after that, what is its yield to maturity if it sells for $200?A)9 percentB)10 percentC)11 percentD)12 percent Answer: BAACSB: Analytical Thinking35)The present value of a fixed-payment loan is calculated as the of thepresent value of all cash f

25、low payments.A)sumB)differenceC)multipleD)log Answer: AAACSB: Analytical Thinking36)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 yield to maturity are positively

26、 related.C)The yield to maturity is greater than the coupon rate when the bond price is above the par value.D)The yield is less than the coupon rate whenthe bond price is below the par value. Answer: AAACSB: Reflective Thinking37)The of a coupon bond and the yield to maturity are inversely related.A

27、)priceB)par valueC)maturity dateD)termAnswer: AAACSB: Reflective Thinking38)The price of a coupon bond and the yield to maturity are related; thatis, as the yield to maturity , the price of the bond .A)positively; rises; risesB)negatively; falls; fallsC)positively; rises; fallsD)negatively; rises; f

28、allsAnswer: DAACSB: Reflective Thinking39)The yield to maturity is than the rate when the bond priceis its face value.A)greater; coupon; aboveB)greater; coupon; belowC)greater; perpetuity; aboveD)less; perpetuity; belowAnswer: BAACSB: Reflective Thinking40)The is below the coupon rate when the bond

29、price is its parvalue.A)yield to maturity; aboveB)yield to maturity; belowC)discount rate; aboveD)discount rate; below Answer: AAACSB: Reflective Thinking41)A $10,000 8 percent coupon bond that sells for $10,000 has a yield to maturity ofA)8 percent.B)10 percent.C)12 percent.D)14 percent.Answer: AAA

30、CSB: Analytical Thinking42)Which of the following $1,000 face-value securities has the highest yield to maturity?A)a 5 percent coupon bond selling for $1,000B)a 10 percent coupon bond selling for $1,000C)a 12 percent coupon bond selling for $1,000D)a 12 percent coupon bond selling for $1,100Answer:

31、CAACSB: Analytical Thinking43)Which of the following $5,000 face-value securities has the highest yield to maturity?A)a 6 percent coupon bond selling for $5,000B)a 6 percent coupon bond selling for $5,500C)a 10 percent coupon bond selling for $5,000D)a 12 percent coupon bond selling for $4,500Answer: DAACSB: Analytical Thinking44)Which of the following $1,000 face-value securities has the highest yield to