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đề 1
đề 1
A credit market instrument that provides the borrower with an amount of funds
that must be repaid at the maturity date along with an interest payment is known as a
4. The price of a coupon bond and the yield to maturity are________ related; that is,
as the yield to maturity________, the price of the bond________
A. positively; rises; rises
B. negatively; falls; falls
C. positively; rises; falls
D. negatively; rises: falls
5. The present value of an expected future payment as the interest rate increases
A. falls
B. rises
C. is constant
D. is unaffected
7. If 1-year interest rates for the next three years are expected to be 5, 3, and 4
percent, and the 3-year term premium is 1 percent, then the 3-year bond rate will be
A. 1 percent
B. 2 percent
C. 4 percent
D. 5 percent
8. Municipal bonds have default risk, yet their interest rates are lower than the rates
on default-free Treasury bonds. This suggests that
A. the benefit from the tax-exempt status of municipal bonds is less than their default risk.
B. the benefit from the tax-exempt status of municipal bonds equals their default risk.
C. the benefit from the tax-exempt status of municipal bonds exceeds their default risk.
D. Treasury bonds are not default-free.
9. If a bond pays $10 coupon each year until maturity and repay $200 face value in
next five years, its present value is $180 if the yield to maturity is
A. 5 percent
B. 7,5 percent
C. 10 percent
D. 12,5 percent
10. A key assumption in the segmented markets theory is that bonds of different
maturities
A. are not substitutes at all.
B. are perfect substitutes.
C. are substitutes only if the investor is given a premium incentive.
D. are substitutes but not perfect substitutes
12. At any given time, the yield on commercial paper is ________ the yield on a T-
bill with the same maturity
A. slightly less than
B. slightly higher than.
C. equal to
D. A and B both occur with about equal Frequency
14. An investor buys T-bill with $1.000.000.000 par value, I 80 days- maturity.
After 80 days. he sells the 'l'-bill for $980.000. Caculate the yield to maturity?
A. 4,7% 13. 5,7% C. 5,2%
15. A repurchase agreement calls for an investor to buy securities for $4.925,000
in 60 days for $5,000,000. What is the yield?
A. 9.43 % 13. 9.28 % C. 9.14 %
16. There are two major types of participants in futures and forward markets:
A. Brokers and dealers
B. Hedgers and speculators
C. Investors and speculators
D. Sellers and traders
18 A call option:
A. is the same as a put option
B. gives the owner a right to buy a financial instrument at the exercise price within a
specific period of time
C. gives the owner a right to sell a financial instrument at the exercise price within a
specific period of time
D. is the same as an American option.
19. The longer the time to maturity, the ____________the call option premium and the
put option premium
A. higher; lower B. lower; higher C. higher; higher D. lower; lower
20. ___________ are commonly used by firms to hedge their exposure to interest rate
fluctuations.
A. Interest rateB. Option contract C. Future swaps D. Currency Swaps
Swaps
21. The buyers of option contracts have gain and ________loss as futures prices vary.
A. Unlimited, limited
B. Limited, limited
C. Unlimited, unlimited
D. None of above
22.The investor sells a future contract of 1.000 stocks with a future price of $45/stocks. If
the market price of security on a day before maturity is $35, on that day, he will:
A. Gain $5.000 B. Gain $10.000 C. Loss $10.000 D. Loss $5.000
23. The investor buys a call option on 200 securities with a strike price of $50/stock
and a premium of $5/stock. If the market price of security at maturity is $57, he will
A. Exerice the call option and gain $400
B. Exerice the call option and loss $400
C. Do not exerice the call option and gain $400
D. Do not exerice the call option and loss $400
24. The investor sells a put option on 200 securities with a strike price of $30/stock
and a premium of $2/stock. if the market price of security at maturity is $26, he will
B. Loss $400 C. Gain $300 D. Loss $300
25. The ________interest rate more accurately reflects the true cost of borrowing
A. nominal B. real C. discount D. market