Bus170 Mdtrm2 Fal08-K37z

Bus170 Mdtrm2 Fal08-K37z - f 9, ?-cfw_ BUS 170:...

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f 9, ?-{ BUS 170: Fundamentals of Finance Fall 2008 Midterm Exam #2 (Yersion 2) trr
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Part I: Multiple Choice Questions (30 points total; 3 points each) Select the best answer. 1 . The increase in buying power you realize as a result of owning a bond is referred to as the rate of return. (a) inflated (b) nominal r(c) real (d) risk-free Answer: L 2. All else constant, a bond will sell at _ when the coupon rate is the yield to maturity. (a) a premium; less than (b) apremium; equal to (c) a discount; less than (d) a discount; higherthan Answer: C, / 3. The price a dealer is willing to pay for a security is called the: (a) askedprice. (b) bid price. (c) bid-ask spread. (d) auction price. T Answer: D
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4. The premium is that portion of a nominal interest rate or bond yield that represents compensation for the possibility of nonpayment by the bond issuer. (a) default risk @) liquidity (c) inflation (d) interest rate risk Answer: a / 5. The rate at which a stock's price is expected to appreciate (or depreciate) is called the yield. (a) current
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This note was uploaded on 09/08/2010 for the course BUS 170 at San Jose State University .

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Bus170 Mdtrm2 Fal08-K37z - f 9, ?-cfw_ BUS 170:...

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