This preview shows pages 1–3. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
Unformatted text preview: A)12 percent. B) 5 percent. C)12.5 percent. D) 8 percent. 5)If a $5,000 coupon bond has a coupon rate of 13 percent, then the coupon payment every year is A)$1,300. B)$130. C)$13. D)$650. E)None of the above. 6)A loan that requires the borrower to make the same payment every period until the maturity date is called a A)discount loan. B)simple loan. C)samepayment loan. D)fixedpayment loan. E)none of the above. 7)The interest rate that equates the present value of the cash flow received from a debt instrument with its market price today is the A)simple interest rate. B) real interest rate. C)yield to maturity. D) discount rate. ESSAY. Write your answer in the space provided or on a separate sheet of paper. 8)Describe how Treasury Inflation Protection Securities (TIPS) work and how they help policymakers estimate expected inflation. 9)Why are longterm bonds more risky than shortterm bonds? 1)D 2)D 3)C 4)D 5)D 6)D 7)C 8) 9)...
View
Full
Document
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.
 Spring '08
 cobus

Click to edit the document details