Question 1

You turn to the bond market page of a newspaper and look under the column headed "Close" and see that it says,"49 1/2" this indicates that

Accepted Answer

A)  the closing price for the bond on this particular day is $495. 
B)  the closing price for the bond on this particular day is $49.50. 
C)  the closing price for the bond was $49.50 higher than on the previous trading day. 
D)  the bond will mature on June 30,2049. 
A)  the closing price for the bond on this particular day is $495. 
B)  the closing price for the bond on this particular day is $49.50. 
C)  the closing price for the bond was $49.50 higher than on the previous trading day. 
D)  the bond will mature on June 30,2049.

Question 2

Jessica paid $7,000 for a bond with a face value of $6,000.She will be paid $400 annually as long as she holds on to the bond,until the bond's maturity date.The yield on the bond is

Accepted Answer

A)  6.67 percent. 
B)  5.71 percent. 
C)  15.0 percent. 
D)  80.0 percent. 
A)  6.67 percent. 
B)  5.71 percent. 
C)  15.0 percent. 
D)  80.0 percent.

Question 3

Which of the following statements is false?

Accepted Answer

A)  The Wilshire 5000 is a stock index that consists of the stocks of about 6,500 firms. 
B)  Instead of buying a mutual fund that consists of various stocks picked by a fund manager you can buy a mutual fund that consists of the stocks that make up a particular stock index. 
C)  The term Sypders stands for "Standard & Poors Direct Receipts." 
D)  When an investor buys Spyders they are said to "buy the market." 
A)  The Wilshire 5000 is a stock index that consists of the stocks of about 6,500 firms. 
B)  Instead of buying a mutual fund that consists of various stocks picked by a fund manager you can buy a mutual fund that consists of the stocks that make up a particular stock index. 
C)  The term Sypders stands for "Standard & Poors Direct Receipts." 
D)  When an investor buys Spyders they are said to "buy the market."

Question 4

A person buys a newly issued bond that matures in 6 years with a face value of $1,000 and a coupon rate of 5%.How much money will the bondholder receive in the sixth year?

Accepted Answer

A)  $1,050. 
B)  $1,500. 
C)  $1,000. 
D)  $50. 
E)  $500 
A)  $1,050. 
B)  $1,500. 
C)  $1,000. 
D)  $50. 
E)  $500

Question 5

Which of the following statements is true?

Accepted Answer

A)  Treasury bills mature in 2 to 10 years. 
B)  Treasury notes mature in 13 or 26 weeks. 
C)  Treasury bills,notes,and bonds are considered to be very safe investments. 
D)  Municipal bonds are issued to help the federal government build new projects such as highways and stadiums. 
A)  Treasury bills mature in 2 to 10 years. 
B)  Treasury notes mature in 13 or 26 weeks. 
C)  Treasury bills,notes,and bonds are considered to be very safe investments. 
D)  Municipal bonds are issued to help the federal government build new projects such as highways and stadiums.

Question 6

The coupon rate is equal to the annual coupon payment

Accepted Answer

A)  divided by the face value of the bond. 
B)  divided by the price paid for the bond. 
C)  multiplied by the price paid for the bond. 
D)  divided by the current market value of the bond. 
A)  divided by the face value of the bond. 
B)  divided by the price paid for the bond. 
C)  multiplied by the price paid for the bond. 
D)  divided by the current market value of the bond.

Question 7

-Refer to Exhibit 38-1.The coupon rate for bond A is

Accepted Answer

A)  6.0 percent. 
B)  10.0 percent. 
C)  7.5 percent. 
D)  0.075 percent. 
A)  6.0 percent. 
B)  10.0 percent. 
C)  7.5 percent. 
D)  0.075 percent.

Question 8

-Refer to Exhibit 38-1.The coupon rate for bond E is

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

Question 9

-Refer to Exhibit 38-1.The coupon rate for bond D is

Accepted Answer

A)  11 percent. 
B)  6.4 percent. 
C)  3 percent. 
D)  0.07 percent. 
A)  11 percent. 
B)  6.4 percent. 
C)  3 percent. 
D)  0.07 percent.

Question 10

-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)  5.0 percent. 
A)  37.5 percent. 
B)  0.38 percent. 
C)  0.45 percent. 
D)  5.0 percent.

You turn to the bond market page of a newspaper and look under the column headed "Close" and see that it says,"49 1/2" this indicates that

Jessica paid $7,000 for a bond with a face value of $6,000.She will be paid $400 annually as long as she holds on to the bond,until the bond's maturity date.The yield on the bond is

Which of the following statements is false?

A person buys a newly issued bond that matures in 6 years with a face value of $1,000 and a coupon rate of 5%.How much money will the bondholder receive in the sixth year?

Which of the following statements is true?

The coupon rate is equal to the annual coupon payment

-Refer to Exhibit 38-1.The coupon rate for bond A is

-Refer to Exhibit 38-1.The coupon rate for bond E is

-Refer to Exhibit 38-1.The coupon rate for bond D is

-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

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,union,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

The Economic Case for and Against Government: Five Topics Considered

Stocks,bonds,futures,and Options

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Exam 24: Stocks,bonds,futures,and Options

You turn to the bond market page of a newspaper and look under the column headed "Close" and see that it says,"49 1/2" this indicates that

Jessica paid $7,000 for a bond with a face value of $6,000.She will be paid $400 annually as long as she holds on to the bond,until the bond's maturity date.The yield on the bond is

Which of the following statements is false?

A person buys a newly issued bond that matures in 6 years with a face value of $1,000 and a coupon rate of 5%.How much money will the bondholder receive in the sixth year?

Which of the following statements is true?

The coupon rate is equal to the annual coupon payment

-Refer to Exhibit 38-1.The coupon rate for bond A is

-Refer to Exhibit 38-1.The coupon rate for bond E is

-Refer to Exhibit 38-1.The coupon rate for bond D is

-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

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,union,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

The Economic Case for and Against Government: Five Topics Considered

Stocks,bonds,futures,and Options

Filters