Question 1

A share of stock is

Accepted Answer

A)  a claim on the assets of the corporation that gives the purchaser an ownership right in the corporation. 
B)  the share of profits distributed to stockholders. 
C)  a promise to pay for the use of someone else's money. 
D)  a promise to loan money to someone. 
E)  a and b 
A)  a claim on the assets of the corporation that gives the purchaser an ownership right in the corporation. 
B)  the share of profits distributed to stockholders. 
C)  a promise to pay for the use of someone else's money. 
D)  a promise to loan money to someone. 
E)  a and b

Question 2

Which of the following is false?

Accepted Answer

A)  A corporate bond typically has face value of $1,000. 
B)  Corporate bonds typically sell for a price that is equal to the bond's face value. 
C)  The interest that corporate bonds pay is fully taxable. 
D)  State and local governments issue municipal bonds. 
A)  A corporate bond typically has face value of $1,000. 
B)  Corporate bonds typically sell for a price that is equal to the bond's face value. 
C)  The interest that corporate bonds pay is fully taxable. 
D)  State and local governments issue municipal bonds.

Question 3

Jessica paid $4,000 for a bond with a face value of $5,000.She will be paid $400 annually as long as she holds on to the bond,until the bond's maturity date.The coupon rate of the bond is

Accepted Answer

A)  8.0 percent. 
B)  7.5 percent. 
C)  10.0 percent. 
D)  80.0 percent. 
E)  none of the above 
A)  8.0 percent. 
B)  7.5 percent. 
C)  10.0 percent. 
D)  80.0 percent. 
E)  none of the above

Question 4

Exhibit 38-4
  
-Refer to Exhibit 38-4. If the closing price of Greenco's stock on the previous day was $48.10,what value goes in blank (B)?

Accepted Answer

A)  $47.35 
B)  $48.85 
C)  $45.85 
D)  $47.85 
E)  There is not enough information given to answer this question. 
A)  $47.35 
B)  $48.85 
C)  $45.85 
D)  $47.85 
E)  There is not enough information given to answer this question.

Question 5

Exhibit 38-1
  
-Refer to Exhibit 38-1.The yield on bond B is approximately

Accepted Answer

A)  0.17 percent. 
B)  18.9 percent. 
C)  0.15 percent. 
D)  17 percent. 
E)  none of the above 
A)  0.17 percent. 
B)  18.9 percent. 
C)  0.15 percent. 
D)  17 percent. 
E)  none of the above

Question 6

Treasury bonds are so safe (risk-free)that they often pay relatively low returns.

Accepted Answer

A) True 
 B)False

Question 7

Exhibit 38-3
  
-Refer to Exhibit 38-3. Which of the two stocks has a bigger gap between its close price and net earnings per share?

Accepted Answer

A)  Stock ABC 
B)  Stock XYZ 
C)  Both stocks have the same gap between its close price and net earnings per share 
D)  There is not enough information provided to answer the question. 
A)  Stock ABC 
B)  Stock XYZ 
C)  Both stocks have the same gap between its close price and net earnings per share 
D)  There is not enough information provided to answer the question.

Question 8

Exhibit 38-1
  
-Refer to Exhibit 38-1.The yield on bond E is approximately

Accepted Answer

A)  37.5 percent. 
B)  0.38 percent. 
C)  0.45 percent. 
D)  9.0 percent. 
E)  none of the above 
A)  37.5 percent. 
B)  0.38 percent. 
C)  0.45 percent. 
D)  9.0 percent. 
E)  none of the above

Exam 38: Stocks, Bonds, Futures, and Options

A share of stock is

Which of the following is false?

Jessica paid $4,000 for a bond with a face value of $5,000.She will be paid $400 annually as long as she holds on to the bond,until the bond's maturity date.The coupon rate of the bond is

Exhibit 38-4 -Refer to Exhibit 38-4. If the closing price of Greenco's stock on the previous day was $48.10,what value goes in blank (B)?

Exhibit 38-1 -Refer to Exhibit 38-1.The yield on bond B is approximately

Treasury bonds are so safe (risk-free)that they often pay relatively low returns.

Exhibit 38-3 -Refer to Exhibit 38-3. Which of the two stocks has a bigger gap between its close price and net earnings per share?

Exhibit 38-1 -Refer to Exhibit 38-1.The yield on bond E is approximately

What Economics Is About

Production Possibilities Frontier Framework

Supply and Demand: Theory

Prices: Free, Controlled, and Relative

Supply, Demand, and Price: Applications

Macroeconomic Measurements: Prices and Unemployment

Macroeconomic Measurements: GDP and Real GDP

Aggregate Demand and Aggregate Supply

Classical Macroeconomics and the Self Regulating Economy

Keynesian Macroeconomics and Economic Instability: A Critique of the Self-Regulating Economy

Fiscal Policy and the Federal Budget

Money, Banking,and the Financial System

The Federal Reserve System

Money and the Economy

Monetary Policy

Expectations Theory and the Economy

Economic Growth: Resources, Technology, Ideas, and Institutions

The Financial Crisis of 2007-2009

Debates in Macroeconomics Over the Role and Effects of Government

Elasticity

Consumer Choice: Maximizing Utility and Behavioral Economics

Production and Costs

Perfect Competition

Monopoly

Monopolistic Competition, Oligopoly, and Game Theory

Government and Product Markets: Antitrust and Regulation

Factor Markets: With Emphasis on the Labor Market

Wages,Unions,and Labor

The Distribution of Income and Poverty

Interest, Rent, and Profit

Market Failure: Externalities, Public Goods, and Asymmetric Information

Public Choice and Special-Interest-Group Politics

Building Theories to Explain Everyday Life: From Observations to Questions to Theories to Predictions

International Trade

International Finance

Globalization and International Impacts on the Economy

The Economic Case For and Against Government: Five Topics Considered

Agriculture: Problems, Policies, and Unintended Effects

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