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5 Topic 5 Quiz - MGMT 310 102 2020W Introduction To Finance
5 Topic 5 Quiz - MGMT 310 102 2020W Introduction To Finance
Attempt History
Attempt Time Score
LATEST Attempt 1 197 minutes 9 out of 10
Question 1 1 / 1 pts
The yield to maturity will be greater than the coupon rate when a bond is selling at a premium.
True
Correct!
False
Question 2 1 / 1 pts
Correct!
True
False
Question 3 1 / 1 pts
A bond selling at a premium sells for more than its face value.
Correct!
True
False
Question 4 1 / 1 pts
A callable bond can not be repurchased by the issuer prior to the initial maturity date.
True
Correct!
False
Question 5 0 / 1 pts
Any regular coupon bond of any maturity will sell for below its face value if the coupon rate is the same as the market rate of interest.
Question 6 1 / 1 pts
A zero coupon bond is initially sold at a deep discount.
Correct! True
False
Question 7 1 / 1 pts
The market price of a bond is equal to the present value of the face value plus the present value of the coupon payments.
Correct! True
False
Question 8 1 / 1 pts
A bond with a 7% coupon that pays interest semi-annually and is priced at par will have a market price of _____ and interest payments in the
amount of _____ each.
$1,070; $70
$1,070; $35
$1,007; $70
Question 9 1 / 1 pts
The bonds of Microhard, Inc. carry a 10% annual coupon, have a $1,000 face value, and mature in four years. Bonds of equivalent risk yield 7%.
What is the market value of Microhard's bonds?
Correct! $1,101.62
$1,087.25
$1,095.66
$1,011.20
Question 10 1 / 1 pts
Calculate the nominal rate of interest given a real rate of 8% and an inflation rate of 2%.
Correct! 10.16%
10.75%
10.01%
10.48%