Which of the following statements is most correct? ( )选项： A:A 5-yea

1.The future value of a lump sum at the end of five years is $1,000. The nominal interest rate is 10 percent and interest is compounded semiannually. Which of the following statements is most correct? ( )选项： A:The present value of the $1,000 is greater if interest is compounded monthly rather than semiannually. B:The effective annual rate is greater than 10 percent. C:The periodic interest rate is 5 percent. D:Statements b and c are correct. E:All of the statements above are correct.

2.A 15-year mortgage will have larger monthly payments than a 30-year mortgage of the same amount and same interest rate.（）选项： A:对 B:错

3.Which of the following is true about perpetuities? 选项： A、All else equal, the present value of a perpetuity is higher when the periodic cash flow is higher. B、All else equal, the present value of a perpetuity is higher when the interest rate is lower. C、 If two perpetuities have the same present value and the same interest rate, they must have the same cash flows. D、All of the above are true statements.

4.3. you are comparing two annuities which offer monthly payments for ten years. Both annuities are identical with the exception of the payment dates. Annuity A pays on the first of each month while annuity B pays on the last day of each month. Which one of the following statements is correct concerning these two annuities? 选项：A、Both annuities are of equal value today. B、Annuity B is an annuity due. C、Annuity A has a higher future value than annuity B. D、Annuity B has a higher present value than annuity A. E、Both annuities have the same future value as of ten years from today.

5.Bond A has a 9 percent annual coupon, while Bond B has a 7 percent annual coupon. Both bonds have the same maturity, a face value of $1,000, and an 8 percent yield to maturity. Which of the following statements is most correct? ( )选项： A:Bond A trades at a discount, whereas Bond B trades at a premium. B:If the yield to maturity for both bonds remains at 8 percent, Bond A’s price one year from now will be higher than it is today, but Bond B’s price one year from now will be lower than it is today. C:If the yield to maturity for both bonds immediately decreases to 6 percent, Bond A’s bond will have a larger percentage increase in value. D:All of the statements above are correct. E:None of the statements above is correct.

6.You have determined the profitability of a planned project by finding the present value of all the cash flows from that project. Which of the following would cause the project to look more appealing in terms of the present value of those cash flows? ( )选项： A:The discount rate decreases. B:The cash flows are extended over a longer period of time, but the total amount of the cash flows remains the same. C:The discount rate increases. D:Statements b and c are correct. E:Statements a and b are correct.

7.There are two bonds with the same face value $1,000. One maturity is three years, while the other one is 5 years. Both bonds have the annual coupon payments $50. Which of the following statement is NOT correct? 选项： A: For both bonds, higher interest rates cause the bond to sell for a discount.; B:For both bonds, lower interest rates cause the bond to sell for a premium.; C:When the interest rate increases, the price of the 5-year bond is higher than the price of the 3-year bond.; D:When the interest rate decreases, the increase of prices is greater for the 5-year bond than for the 3-year bond.

8.Assume that a 10-year Treasury bond has a 12 percent annual coupon, while a 15-year Treasury bond has an 8 percent annual coupon. The yield curve is flat; all Treasury securities have a 10 percent yield to maturity. Which of the following statements is most correct? ( )选项： A:The 10-year bond is selling at a discount, while the 15-year bond is selling at a premium. B:The 10-year bond is selling at a premium, while the 15-year bond is selling at par. C:If interest rates decline, the price of both bonds will increase, but the 15-year bond will have a larger percentage increase in price. D:If the yield to maturity on both bonds remains at 10 percent over the next year, the price of the 10-year bond will increase, but the price of the 15-year bond will fall. E:Statements c and d are correct.

9.Anna pays .85 percent interest monthly on her credit card account. When the interest rate on that debt is expressed as if it were compounded annually, the rate would be referred to as the: 选项： A、annual percentage rate. B、simplified rate. C、quoted rate. D、stated rate. E、effective annual rate.

10.When a company sells its bonds at less than face value, the effective interest rate is 选项： A、lower than the yield rate. B、higher than the contract interest rate. C、lower than the nominal rate D、higher than the market interest rate

11.If a country experienced deflation, then ( ) 选项： A、the nominal interest rate would be greater than the real interest rate. B、the real interest rate would be greater than the nominal interest rate. C、the real interest rate would equal the nominal interest rate. D、None of the above is necessarily correct.

12.If a country experienced deflation, then ( )选项： A:the nominal interest rate would be greater than the real interest rate.; B:the real interest rate would be greater than the nominal interest rate.; C:the real interest rate would equal the nominal interest rate.; D:None of the above is necessarily correct.

13.Assuming a positive interest rate, the dollar amount of a future payment is: 选项： A:exactly the same as its present value. B:approximately the same as its present value. C:less than its present value. D:more than its present value.

14.Which of the following will increase the present value of an annuity, other things equal? 选项： A:Increasing the interest rate; B:Decreasing the interest rate; C:Increasing the amount of payments; D:Increasing the number of payments

15.A 10-year bond pays an annual coupon. The bond has a yield to maturity of 8 percent. The bond currently trades at a premium--its price is above the par value of $1,000. Which of the following statements is most correct? ( )选项： A:If the yield to maturity remains at 8 percent, then the bond’s price will decline over the next year. B:The bond’s current yield is less than 8 percent. C:If the yield to maturity remains at 8 percent, then the bond’s price will remain the same over the next year. D:The bond’s coupon rate is less than 8 percent. E:If the yield to maturity increases, then the bond’s price will increase.

16.Stock A and Stock B both have an expected return of 10 percent and a standard deviation of 25 percent. Stock A has a beta of 0.8 and Stock B has a beta of 1.2. The correlation coefficient, r, between the two stocks is 0.6. Portfolio P is a portfolio with 50 percent invested in Stock A and 50 percent invested in Stock B. Which of the following statements is most correct? （）选项： A:Portfolio P has a coefficient of variation equal to 2.5 B:Portfolio P has more market risk than Stock A but less market risk than Stock B C:Portfolio P has a standard deviation of 25 percent and a beta of 1.0 D:All of the statements above are correct E:None of the statements above is correct

17.Four years ago, Saul invested $500. Three years ago, Trek invested $600. Today, these two investments are each worth $800. Assume each account continues to earn its respective rate of return. Which one of the following statements is correct concerning these investments? 选项： A:Three years from today, Trek's investment will be worth more than Saul's. B:One year ago, Saul's investment was worth less than Trek's investment. C:Trek earns a higher rate of return than Saul. D:Trek has earned an average annual interest rate of 9.86 percent. E:Saul has earned an average annual interest rate of 12.64 percent. F:Analytical Thinking

18.Which of the following statements is most correct? ( )选项： A:Preferred stockholders have priority over common stockholders. B:A big advantage of preferred stock is that preferred stock dividends are tax deductible for the issuing corporation. C:Most preferred stock is owned by corporations. D:Statements a and b are correct. E:Statements a and c are correct.

19.Which of the following statements is true? (　　) a. Productivity is calculated as hours worked divided by output produced. b. Americans have a higher standard of living than Indonesians because American workers are more productive than Indonesian workers. c. d. None of the above are correct.

20.A $500,000 bond issue sold at 98. Therefore, the bonds: 选项： A、Sold at a discount because the stated rate of interest was lower than the effective rate. B、Sold for the $500,000 face amount less $10,000 of accrued interest. C、Sold at a premium because the stated rate of interest was higher than the yield rate. D、Sold at a discount because the effective interest rate was lower than the face rate.