Question 1

What is the effect of an increase in the current price of an investment?

Accepted Answer

A) The approximate expected yield will increase. 
B) The approximate expected yield will decrease. 
C) The approximate expected yield will remain the same. 
D) The average annual current income will increase. 
E) The average annual current income will decrease. 
A) The approximate expected yield will increase. 
B) The approximate expected yield will decrease. 
C) The approximate expected yield will remain the same. 
D) The average annual current income will increase. 
E) The average annual current income will decrease.

Question 2

The issuer of your corporate bond has the right to retire it at any time before maturity.You have a __________. ​

Accepted Answer

A) freely callable bond 
B) noncallable bond 
C) puttable bond 
D) deferred call bond 
A) freely callable bond 
B) noncallable bond 
C) puttable bond 
D) deferred call bond

Question 3

Stocks whose prices tend to increase when the economy is in an expansionary stage and decline during a contractionary stage are called:

Accepted Answer

A) cyclical stocks. 
B) defensive stocks. 
C) speculative stocks. 
D) income stocks. 
E) tech stocks. 
A) cyclical stocks. 
B) defensive stocks. 
C) speculative stocks. 
D) income stocks. 
E) tech stocks.

Question 4

Sunshine Mining bonds have a $1,000 face value,pay $95 annual interest,mature in 2020,and are currently quoted at $1,302.50.The coupon rate of the bond is:

Accepted Answer

A) 8.500%. 
B) 9.500%. 
C) 13.025%. 
D) 13.052%. 
E) 7.340%. 
A) 8.500%. 
B) 9.500%. 
C) 13.025%. 
D) 13.052%. 
E) 7.340%.

Question 5

Market risk considers the possibility that a firm may fail.

Accepted Answer

A) True 
 B)False

Question 6

Net profit margin is a key measure of profitability that relates the net profits of a firm to its sales.

Accepted Answer

A) True 
 B)False

What is the effect of an increase in the current price of an investment?

The issuer of your corporate bond has the right to retire it at any time before maturity.You have a __________.

Stocks whose prices tend to increase when the economy is in an expansionary stage and decline during a contractionary stage are called:

Sunshine Mining bonds have a $1,000 face value,pay $95 annual interest,mature in 2020,and are currently quoted at $1,302.50.The coupon rate of the bond is:

Market risk considers the possibility that a firm may fail.

Net profit margin is a key measure of profitability that relates the net profits of a firm to its sales.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Mutual Funds, ETFS and Real Estate

Planning for Retirement

Preserving Your Estate

Filters

Exam 12: Investing in Stocks and Bonds

What is the effect of an increase in the current price of an investment?

The issuer of your corporate bond has the right to retire it at any time before maturity.You have a __________. ​

Stocks whose prices tend to increase when the economy is in an expansionary stage and decline during a contractionary stage are called:

Sunshine Mining bonds have a $1,000 face value,pay $95 annual interest,mature in 2020,and are currently quoted at $1,302.50.The coupon rate of the bond is:

Market risk considers the possibility that a firm may fail.

Net profit margin is a key measure of profitability that relates the net profits of a firm to its sales.

Understanding the Financial Planning Process

Using Financial Statements and Budgets

Preparing Your Taxes

Managing Your Cash and Savings

Making Automobile and Housing Decisions

Using Credit

Using Consumer Loans

Insuring Your Life

Insuring Your Health

Protecting Your Property

Investment Planning

Investing in Mutual Funds, ETFS and Real Estate

Planning for Retirement

Preserving Your Estate

Filters

The issuer of your corporate bond has the right to retire it at any time before maturity.You have a __________.