# In a general sense the value of any asset is the

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week 4 quiz

Question 8   0 / 3.75 points Floating rate bonds are most likely to be popular with investors when it is anticipated that Question options :
interest rates will stay the same .
interest rates will go up .
interest rates will go down .
short - term interest rates will be higher than long - term interest rates .
Question 10   3.75 / 3.75 points If the yield to maturity on a bond is greater than the coupon rate , you can assume Question options :
Question 11   3.75 / 3.75 points Given that there are 4,000,000 shares outstanding in Miller Corp. , how many shares will be required for a minority group of stockholders to elect two of the nine members on the board of directors ? ( Assume cumulative voting is required . )
Question 13   3.75 / 3.75 points The interest factor ( IF ) for the future value of an ordinary annuity is 4.641 at 10 % for four years . If we wish to accumulate \$ 8,000 by the end of four years , how much should the annual payments be ?
Question 14   3.75 / 3.75 points A 10 - year bond , with a par value equaling \$ 1,000 , pays 7 % annually . If similar bonds are currently yielding 6 % annually , what is the market value of the bond ? Use semi-annual analysis .
Question options : \$ 700.00 \$ 927.50 \$ 1,074.70 \$ 1,520.70
Question 16   3.75 / 3.75 points A 20 - year bond pays 6 % on a face value of \$ 1,000 . If similar bonds are currently yielding 5 % , what is the market value of the bond ? Use annual analysis .
Question 17   3.75 / 3.75 points A 10 - year zero - coupon bond that yields 5 % is issued with a \$ 1,000 par value . What is the issuance price of the bond ? Round to the nearest dollar .
Question 18   3.75 / 3.75 points A bond with a coupon rate of 6.5 % , maturing in 10 years at a value of \$ 1,000 and a current market price of \$ 950 , will have a yield to maturity ( using the approximation formula ) of
Question 19   3.75 / 3.75 points If you invest \$ 10,000 today at 10 % interest , how much will you have in 10 years ?
Question options : \$ 13,860 \$ 25,940 \$ 3,860 \$ 80,712
Question 20   3.75 / 3.75 points Coase Corp. has 10,000,000 outstanding shares . There are 11 directors on the firm ’s board . The Becker family owns 2,300,000 shares of Coase Corp . How many directors can the Becker family be assured of electing by themselves if Coase Corp. uses majority voting ?
Question 21   3.75 / 3.75 points Lou Lewis borrows \$ 10,000 to be repaid over 10 years at 9 % . Repayment of principal in the first year is _______.
Question 93.75 / 3.75 pointsIn a general sense, the value of any asset is theQuestion options:value of the dividends received from the asset.present value of the cash flows expected to be received from the asset.value of past dividends and price increases for the asset.future value of the expected earnings discounted by the asset’scost of capital.
Question 103.75 / 3.75 pointsIf the yield to maturity on a bond is greater than the coupon rate, you can assume
Question 113.75 / 3.75 pointsGiven that there are 4,000,000 shares outstanding in Miller Corp., how many shares will be required for a minority group of stockholders to elect two of the nine members on the board of directors? (Assume cumulative voting is required.)
Question 123.75 / 3.75 pointsA bond with a call provision would generally be sold to yield
Question 133.75 / 3.75 pointsThe interest factor (IF) for the future value of an ordinary annuity is 4.641 at 10% for four years. If we wish toaccumulate \$8,000 by the end of four years, how much should the annual payments be?Question options:\$2,500\$2,000\$1,724None of these options
Question 143.75 / 3.75 pointsA 10-year bond, with a par value equaling \$1,000, pays 7% annually. If similar bonds are currently yielding 6% annually, what is the market value of the bond? Use semi-annual analysis.
Question 153.75 / 3.75 pointsWhich of the following is not a true statement?
Question 163.75 / 3.75 pointsA 20-year bond pays 6% on a face value of \$1,000. If similar bonds are currently yielding 5%, what is the market value of the bond? Use annual analysis.
Question 173.75 / 3.75 pointsA 10-year zero-coupon bond that yields 5% is issued with a \$1,000 par value. What is the issuance price of the bond? Round to the nearest dollar.Question options:\$614\$64\$6,140None of these options
Question 183.75 / 3.75 pointsA bond with a coupon rate of 6.5%, maturing in 10 years at a value of \$1,000 and a current market price of \$950, will have a yield to maturity (using the approximation formula) of
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