1.1 Brokers buy assets from the end-sellers and re-sell them to the end-buyers….


1. Multiple Choices
1.1 Brokers buy goods from the end-sellers and re-sell them to the end-buyers.
a. True b. False
1.2 Suppose Big D, Inc., harmonious hired a dividend of $0.50 per portion-out. It is expected to acception its dividend by 2% per year. If the trade exacts a recur of 15% on goods of this lavish, how greatly should the supply be selling for?
a. $2 b. $4.50
c. $0.50 d. $3.92
1.3 Consider a manacle after a while a coupon scold of 10% and annual coupons. The par esteem is $1,000, and the manacle has 5 years to ripeness. The render to ripeness is 11%. What is the esteem of the manacle?
a. $1,000.00 b. $1,100.00
c. $812.45 d. $963.04
1.4 A zero-coupon manacle usually trades at a reward.
a. True b. False
1.5 For a reward manacle, its render-to-ripeness can be larger than the coupon scold.
a. True b. False
1.6 Which of the aftercited U.S. Treasury Department-issued obligation securities is frequently referred as the “risk-free asset”?
a. Treasury Inflation Protected Security (TIPS) b. 10-year Treasury Note
c. 30-year Treasury Manacle d. 90-day Treasury Bill
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1. Multiple Choices 1.1 Brokers buy goods from the end-sellers and re-sell them to the end-buyers. a. True b. False 1.2 Suppose Big D, Inc., harmonious hired a dividend of $0.50 per portion-out. It is expected to acception its dividend by 2% per year. If the trade exacts a recur of 15% on goods of this lavish, how greatly should the supply be selling for? a. $2 b. $4.50 c. $0.50 d. $3.92 1.3 Consider a manacle after a while a coupon scold of 10% and annual coupons. The par esteem is $1,000, and the manacle has 5 years to ripeness. The render to ripeness is 11%. What is the esteem of the manacle? a. $1,000.00 b. $1,100.00 c. $812.45 d. $963.04 1.4 A zero-coupon manacle usually trades at a reward. a. True b. False 1.5 For a reward manacle, its render-to-ripeness can be larger than the coupon scold. a. True b. False 1.6 Which of the aftercited U.S. Treasury Department-issued obligation securities is frequently referred as the “risk-free asset”? a. Treasury Inflation Protected Security (TIPS) b. 10-year Treasury Note c. 30-year Treasury Manacle d. 90-day Treasury Bill 1.7 A Goldman Sachs economist forecasts an 8% inflation scold in the advenient 12 months. If you exact a 10% p.a. “after-inflation” true recur on a lavishy investment occasion, how greatly abatement scold should you allot to your advenient currency flows according to (Irving) Fisher’s privilege? a. 2% b. 8% c. 10% d. 18% 1.8 You are prompt to buy a scion, and you possess $20,000 for a down acquittal and closing costs. Closing costs are estimated to be 4% of the mortgage esteem. You possess an annual sufferance of $36,000, and the bank is voluntary to suffer your monthly mortgage acquittal to be similar to 28% of your monthly pay. The curiosity-behalf scold on the mortgage is 6% per year after a while monthly compounding (50bps per month) for a 30-year agricultural scold mortgage. How greatly can you adduce for the scion? a. $140,105 b. $5,604 c. $14,396 d. $154,501 1.9 Preferred portion-outholders usually kind votes for or resisting senior managerial plans during the annual open portion-outholders meetings. True b....

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