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Name
_________________________
Section
_____
ID #
______________________
(Prof. Alagurajah’s sections F and G; Prof. King’s section D; Prof. Li’s section A; Prof.
Tahani’s sections C and E; Prof. Tissenbaum’s sections B and H)
AK/ADMS 3530 Final Exam
Fall 2007
December 10, 2007
7 10 pm
Exam
Type A
–
Part II
This part consists of 25 multiple choice questions. 2 points each for a total of 50 points.
Choose the response which best answers each question. Circle your answers below,
and fill in your answers on the bubble sheet
.
Only the bubble sheet is used to
determine your exam score
. BE SURE TO BLACKEN THE BUBBLES
CORRESPONDING TO YOUR STUDENT NUMBER.
Please note the following eight points
:
1) Please use your time efficiently and start with the questions that you are most
comfortable with first.
Remember
: every question carries the same weight, so
please do NOT spend too much time on one particular question;
2) Read the exam questions carefully;
3) Choose the answers that are
closest
to yours, because of possible rounding;
4) Keep at least 2 decimal places in your calculations and final answers, and at least
4 decimal places for interest rates;
5) Interest rates are annual unless otherwise stated;
6) Bonds pay semiannual coupons unless otherwise stated;
7) Bonds have a par value (or face value) of $1,000; and
8) You may use the back of the exam paper as your scrap paper.
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16 Numerical Questions
26. A loan of $5,000 will be reimbursed with the following two payments: the first
payment is due in one year while the second payment is due in five years. If the
APR is 8%, semiannual compounding, and the amount of the second payment is
$4,000, then what is the amount of the first payment?
A) $1,000.00
B) $2,297.74
C) $2,485.24
D) $3,401.22
27. How much should you pay for a $1,000 par value bond with a 10% coupon, semi
annual coupon payments, and two years to maturity, if the market interest rate is
12% in year 1 and 8% in year 2?
A) $965.35
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This note was uploaded on 04/11/2011 for the course ADMS 3530 taught by Professor Unknown during the Spring '09 term at York University.
 Spring '09
 UNKNOWN

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