UNIVERSITY OF SOUTHERN CALIFORNIA Marshall School of Business INTERNATIONAL FINANCIAL MANAGEMENT FBE 436 Aris Protopapadakis PROBLEM SET # 5: Multiple Choice Questions:M5.7(7.12a) The above table shows the annualized yield for pure discount bonds and the associated prices. Which line includes an incorrectentry? Prices & Maturity (days) Yields 90 180 A 5.50% 0.9864 0.9732 B 6.20% 0.9847 0.9699 C 7.30% 0.9821 0.9648 ( ) a. Line Ais incorrect. ( ) b. Line Bis incorrect. ( ) c. Line Cis incorrect. ( ) d. Lines Aand Care incorrect. ( ) e. All three lines are correct.
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