2504%20Midterm%20Fall%202009

2504%20Midterm%20Fall%202009 - Last Name (PRINT) First name...

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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 #1-22 44 marks Short answer questions (3 questions): questions # 21 22 marks #22 16 marks #23 18 marks TOTAL 100 marks
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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 semi-annually. 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.

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2504%20Midterm%20Fall%202009 - Last Name (PRINT) First name...

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