Question 1

A share of preferred stock pays an annual dividend of $22 per year.If you require a 12.5% return,what is the value of one share to you today?

Accepted Answer

A) $1,760.00 
B) $17.60 
C) $220.00 
D) $176.00 
A) $1,760.00 
B) $17.60 
C) $220.00 
D) $176.00

Question 2

Alice recently bought dozens of collectable Barbie dolls.What ultimately will determine the investment value of Alice's Barbies when she goes to resell them?

Accepted Answer

A) Its return 
B) Its cost 
C) Book value 
D) Supply and demand 
E) None of the above 
A) Its return 
B) Its cost 
C) Book value 
D) Supply and demand 
E) None of the above

Question 3

For a long-term investor,the yield to maturity is the most important yield to determine.

Accepted Answer

A) True 
 B)False

Question 4

The ________ is the face value of a bond,and the amount that is returned to the bondholder at maturity.

Accepted Answer

A) return price 
B) par value 
C) dead price 
D) market price 
E) none of the above 
A) return price 
B) par value 
C) dead price 
D) market price 
E) none of the above

Question 5

For an investor looking for capital gains,preferred stock is preferred over common stock.

Accepted Answer

A) True 
 B)False

Question 6

According to the Morgan Stanley REIT Index,REITs fell by about 15 percent between March 2007 and March 2009.

Accepted Answer

A) True 
 B)False

Question 7

It is possible to make fortunes dealing in collectibles.

Accepted Answer

A) True 
 B)False

Question 8

A bond's yield is always exactly the same as its coupon interest rate.

Accepted Answer

A) True 
 B)False

Question 9

If you are the owners of a share of preferred stock then you have voting rights.

Accepted Answer

A) True 
 B)False

Question 10

XYZ company issued callable bonds three years ago with a 7% coupon rate.Today,the market rate of interest was lowered to 4%.What most likely will happen next?

Accepted Answer

A) XYZ company will lower the par value of their bonds. 
B) XYZ company will raise the coupon rate of their bonds. 
C) XYZ company will call their bonds in. 
D) None of the above is correct. 
A) XYZ company will lower the par value of their bonds. 
B) XYZ company will raise the coupon rate of their bonds. 
C) XYZ company will call their bonds in. 
D) None of the above is correct.

Question 11

Which of the following starts off with the highest risk bond and ends with the lowest risk bond?

Accepted Answer

A) Municipal,Corporate,Treasury,Junk 
B) Corporate,Junk,Treasury,Municipal 
C) Junk,Corporate,Municipal,Treasury 
D) Corporate,Junk,Municipal,Treasury 
A) Municipal,Corporate,Treasury,Junk 
B) Corporate,Junk,Treasury,Municipal 
C) Junk,Corporate,Municipal,Treasury 
D) Corporate,Junk,Municipal,Treasury

Question 12

Sherman has three bonds with a $1,000 par value that pay a 9% coupon interest rate.How much will he earn every six months?

Accepted Answer

A) $27 
B) $90 
C) $135 
D) $202.50 
E) $270 
A) $27 
B) $90 
C) $135 
D) $202.50 
E) $270

Question 13

The biggest single payer in the bond market is the U.S.Government.

Accepted Answer

A) True 
 B)False

Question 14

When a bond is described as AA,what does this refer to?

Accepted Answer

A) A bond that has above average coupon payments 
B) A bond that has above average yield to maturity 
C) A bond rating of "very strong" capacity to pay interest and principle repayment 
D) All of the above are correct. 
E) Only A and C are correct. 
A) A bond that has above average coupon payments 
B) A bond that has above average yield to maturity 
C) A bond rating of "very strong" capacity to pay interest and principle repayment 
D) All of the above are correct. 
E) Only A and C are correct.

Question 15

Gail used her financial calculator to calculate her bond's yield to maturity.Given the following information what was her yield? N = 10;PV = -880.00;PMT = 100;FV = 1000.

Accepted Answer

A) 10.0% 
B) 8.80% 
C) 10.18% 
D) 12.14% 
E) none of the above 
A) 10.0% 
B) 8.80% 
C) 10.18% 
D) 12.14% 
E) none of the above

Question 16

Coupon interest rates determine?

Accepted Answer

A) The rate to price the bond 
B) Annual cash flow from the bond 
C) How much investors are willing to pay 
D) What the bond can be called at 
A) The rate to price the bond 
B) Annual cash flow from the bond 
C) How much investors are willing to pay 
D) What the bond can be called at

Question 17

If the school district wants to build a new high school,they can sell municipal bonds.

Accepted Answer

A) True 
 B)False

Question 18

Preferred stock is similar to bonds in that its dividends are of a fixed size and are paid before common stock dividends are paid.

Accepted Answer

A) True 
 B)False

Question 19

A bond rating is really a measure of a bond's

Accepted Answer

A) performance. 
B) yield. 
C) market value. 
D) riskiness. 
E) yield to maturity. 
A) performance. 
B) yield. 
C) market value. 
D) riskiness. 
E) yield to maturity.

Question 20

The largest single player and payer in the bond market

Accepted Answer

A) is corporate America. 
B) are municipal bond issuers. 
C) is the U.S.government. 
D) are foreign firms. 
E) are schools and county governments. 
A) is corporate America. 
B) are municipal bond issuers. 
C) is the U.S.government. 
D) are foreign firms. 
E) are schools and county governments.

A share of preferred stock pays an annual dividend of $22 per year.If you require a 12.5% return,what is the value of one share to you today?

Alice recently bought dozens of collectable Barbie dolls.What ultimately will determine the investment value of Alice's Barbies when she goes to resell them?

For a long-term investor,the yield to maturity is the most important yield to determine.

The ________ is the face value of a bond,and the amount that is returned to the bondholder at maturity.

For an investor looking for capital gains,preferred stock is preferred over common stock.

According to the Morgan Stanley REIT Index,REITs fell by about 15 percent between March 2007 and March 2009.

It is possible to make fortunes dealing in collectibles.

A bond's yield is always exactly the same as its coupon interest rate.

If you are the owners of a share of preferred stock then you have voting rights.

XYZ company issued callable bonds three years ago with a 7% coupon rate.Today,the market rate of interest was lowered to 4%.What most likely will happen next?

Which of the following starts off with the highest risk bond and ends with the lowest risk bond?

Sherman has three bonds with a $1,000 par value that pay a 9% coupon interest rate.How much will he earn every six months?

The biggest single payer in the bond market is the U.S.Government.

When a bond is described as AA,what does this refer to?

Gail used her financial calculator to calculate her bond's yield to maturity.Given the following information what was her yield? N = 10;PV = -880.00;PMT = 100;FV = 1000.

Coupon interest rates determine?

If the school district wants to build a new high school,they can sell municipal bonds.

Preferred stock is similar to bonds in that its dividends are of a fixed size and are paid before common stock dividends are paid.

A bond rating is really a measure of a bond's

The largest single player and payer in the bond market

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: the Role of Open Credit

Student and Consumer Loans: the Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Investing in Stocks

Mutual Funds: an Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Eventsfitting the Pieces Together

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Exam 13: Investing in Bonds and Other Alternatives

A share of preferred stock pays an annual dividend of $22 per year.If you require a 12.5% return,what is the value of one share to you today?

Alice recently bought dozens of collectable Barbie dolls.What ultimately will determine the investment value of Alice's Barbies when she goes to resell them?

For a long-term investor,the yield to maturity is the most important yield to determine.

The ________ is the face value of a bond,and the amount that is returned to the bondholder at maturity.

For an investor looking for capital gains,preferred stock is preferred over common stock.

According to the Morgan Stanley REIT Index,REITs fell by about 15 percent between March 2007 and March 2009.

It is possible to make fortunes dealing in collectibles.

A bond's yield is always exactly the same as its coupon interest rate.

If you are the owners of a share of preferred stock then you have voting rights.

XYZ company issued callable bonds three years ago with a 7% coupon rate.Today,the market rate of interest was lowered to 4%.What most likely will happen next?

Which of the following starts off with the highest risk bond and ends with the lowest risk bond?

Sherman has three bonds with a $1,000 par value that pay a 9% coupon interest rate.How much will he earn every six months?

The biggest single payer in the bond market is the U.S.Government.

When a bond is described as AA,what does this refer to?

Gail used her financial calculator to calculate her bond's yield to maturity.Given the following information what was her yield? N = 10;PV = -880.00;PMT = 100;FV = 1000.

Coupon interest rates determine?

If the school district wants to build a new high school,they can sell municipal bonds.

Preferred stock is similar to bonds in that its dividends are of a fixed size and are paid before common stock dividends are paid.

A bond rating is really a measure of a bond's

The largest single player and payer in the bond market

The Financial Planning Process

Measuring Your Financial Health and Making a Plan

Understanding and Appreciating the Time Value of Money

Tax Planning and Strategies

Cash or Liquid Asset Management

Using Credit Cards: the Role of Open Credit

Student and Consumer Loans: the Role of Planned Borrowing

The Home and Automobile Decision

Life and Health Insurance

Property and Liability Insurance

Investment Basics

Investing in Stocks

Mutual Funds: an Easy Way to Diversify

Retirement Planning

Estate Planning: Saving Your Heirs Money and Headaches

Financial Life Eventsfitting the Pieces Together

Filters