HW 1 Solutions Chapter 1,2

HW 1 Solutions Chapter 1,2 - MULTIPLE CHOICE. Choose the...

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Unformatted text preview: MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1)Which of the following are true of coupon bonds? A)Corporate bonds are examples of coupon bonds. B)The owner of a coupon bond receives a fixed interest payment every year until the maturity date, when the face or par value is repaid. C)U.S. Treasury bonds and notes are examples of coupon bonds. D)All of the above. E)Only A and B of the above. 2)A credit market instrument that pays the owner the face value of the security at the maturity date and nothing prior to then is called a A)coupon bond. B) fixed-payment loan. C)simple loan. D) discount bond. 3)With an interest rate of 5 percent, the present value of $100 received one year from now is approximately 3) _______ A)$90. B) $100. C) $95. D) $105. 4)The yield to maturity of a one-year, simple loan of $500 that requires an interest payment of...
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This note was uploaded on 09/07/2011 for the course FIN 353 taught by Professor Cobus during the Spring '08 term at S.F. State.

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HW 1 Solutions Chapter 1,2 - MULTIPLE CHOICE. Choose the...

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