HFT 4464 Finance Questions
With Answers
A college education cannot be considered as an investment ch.2 - ANSWER
false
The current yield of a bond is the rate of return on a bond as its current price
ch.2 - ANSWER true
A bond with a rating of Aa is better than a bond rated Bb ch.2 - ANSWER true
As interest rates increase, the price of outstanding bonds decrease ch.2 -
ANSWER true
Most stock trading occurs on the secondary market ch.2 - ANSWER true
Given a two-year loan of $50,000 and an annual interest rate of 8%, how
much interest will accrue during the life of the loan? ch.2 - ANSWER $8,000
The range of correlation coefficient is 0 to -1 ch.2 - ANSWER false
, The best way for a large hospitality firm to hedge a price increase in a
commodity would be to buy a futures contract ch.2 - ANSWER true
Assume you buy a share of stock for $19 and hold it for one year. During that
year you receive $1.80 in dividends. At the end of the year you sell the stock
for $20. What is your holding period return (pre-tax)? ch.2 - ANSWER 14.74%
The current yield of a bond is the rate of return on a bond if you hold it until
maturity ch.2 - ANSWER false
A bond with a rating of AA is better than a bond rated AAA ch.2 - ANSWER
false
As interest rates increase, the prices of outstanding bonds also increase ch.2 -
ANSWER false
IPO's are issued on the primary market ch.2 - ANSWER true
Given a two-year loan of $60,000 and an annual interest rate of 9 percent,
how much interest will accrue during the life of the loan? (Assume no
principle payments during the term) ch.2 - ANSWER $10,800
With Answers
A college education cannot be considered as an investment ch.2 - ANSWER
false
The current yield of a bond is the rate of return on a bond as its current price
ch.2 - ANSWER true
A bond with a rating of Aa is better than a bond rated Bb ch.2 - ANSWER true
As interest rates increase, the price of outstanding bonds decrease ch.2 -
ANSWER true
Most stock trading occurs on the secondary market ch.2 - ANSWER true
Given a two-year loan of $50,000 and an annual interest rate of 8%, how
much interest will accrue during the life of the loan? ch.2 - ANSWER $8,000
The range of correlation coefficient is 0 to -1 ch.2 - ANSWER false
, The best way for a large hospitality firm to hedge a price increase in a
commodity would be to buy a futures contract ch.2 - ANSWER true
Assume you buy a share of stock for $19 and hold it for one year. During that
year you receive $1.80 in dividends. At the end of the year you sell the stock
for $20. What is your holding period return (pre-tax)? ch.2 - ANSWER 14.74%
The current yield of a bond is the rate of return on a bond if you hold it until
maturity ch.2 - ANSWER false
A bond with a rating of AA is better than a bond rated AAA ch.2 - ANSWER
false
As interest rates increase, the prices of outstanding bonds also increase ch.2 -
ANSWER false
IPO's are issued on the primary market ch.2 - ANSWER true
Given a two-year loan of $60,000 and an annual interest rate of 9 percent,
how much interest will accrue during the life of the loan? (Assume no
principle payments during the term) ch.2 - ANSWER $10,800
