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Last Name (PRINT)
First name
Student #
Signature
BUSI 2504
Midterm
Saturday Oct.31 2009
You have 2 hours
to complete the exam. Manage your time wisely.
Instructions
:
1.
The exam consists of 2 parts: multiple choice
part and short answers
part.
2.
For the multiple choice part: write down your answers in the Scantron (bubble sheet) form. Ensure
your name and student number is properly recorded.
3.
For the short answers part: write your answer in the exam booklet.
4.
You may use pen or pencil for your short answers. If you use pencil, you will not
be eligible for re
mark.
5.
Show how you arrived at your answer including the general form of equation, the equation with
the correct numbers substituted in, and the solution
. Provide explanations where appropriate.
6.
Unless otherwise stated, there are no taxes.
7.
Calculators are permitted.
8.
The entire test paper must be returned along with the test booklet and Scantron form.
Received
Multiple choice section (22 questions): questions #122
44 marks
Short answer questions (3 questions): questions
# 21
22 marks
#22
16 marks
#23
18 marks
TOTAL 100 marks
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View Full Document Multiple choice questions
(22 questions; 2 points each for the total of 44 marks)
1. You are considering an investment with a quoted return of 10% per year.
If interest is
compounded daily, what is the effective return on this investment?
A) 1.11%
B) 10.00%
C) 10.25%
D) 10.47%
E) 10.52%
2. A bond indenture is likely to include which of the following?
I.
Maturity date
II.
Sinking fund provision
III.
Protective covenants
IV.
Security or collateral
A)
I and II only
B)
I, II, and III only
C)
I, II, and IV only
D)
II, III, and IV only
E)
I, II, III, and IV
3. You have $500 that you would like to invest. You have two choices:
Savings account
A which earns 8% compounded annually, or savings account B which earns 7.75%
compounded semiannually. Which would you choose and why?
A)
A because it has a higher effective annual rate.
B)
A because the future value in one year is lower.
C)
B because it has a higher effective annual rate.
D)
B because the future value in one year is lower.
E)
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This note was uploaded on 12/15/2010 for the course BUS 2504 taught by Professor Georgekowaski during the Spring '10 term at Carleton CA.
 Spring '10
 GeorgeKowaski
 Economics

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