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HFT 4464-Finance Exam Questions With
Correct Answers 100% Verified.
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
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HFT 4464-Finance Exam Questions With
Correct Answers 100% Verified.
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
1|Page
