单选题An invest or plans to purchase a security and gathers the following information about the security: Face value ￥10000000 Maturity 10months Stated annual rate 4% Frequency of compounding continuously The security's present value is closest to: A. ￥9531338 B. ￥9607894 C. ￥9672161
单选题An analyst does research about option-free bond price change due to both duration and convexity impacts. The duration of an option-free bond is 9.92, and the convexity measure for that bond is 63.8. If interest rates increase by 200 basis points, the bond's percentage price change is closest to: A. -22.39% B. -18.56% C. -17.29%
单选题Ananalystdoesresearchaboutoptionvalue.Ingeneral,withrespecttotwocalloptionsonthesameunderlying,theoptionwithhighervalueismostlikelytohavea:
单选题In the short run, price searchers maximize profits by producing output where marginal revenue (MR):
单选题The performance of professional money managers taken as a whole has
been:
A. below average.
B. above average.
C. better than a simple buy and hold strategy.
单选题When market participants expect the spot price of a commodity to be higher in the future, the commodity market is most likely said to be in:
单选题Which of the following statements regarding forward contracts on T-bills is TRUE? A. If short-term yields increase unexpectedly after contract initiation, the short will profit on the contract. B. There is no default risk on these forwards because T-bills are government-backed. C. The long will receive a payment at settlement if the discount yield is above the forward yield.
单选题Solomon Sulzberg, CFA, is a research analyst at Blue Water Management
单选题A U. S. bank enters into a plain vanilla currency swap with a notional principal of US $ 500 million (GBP￡ 300 million). At each settlement date, the U. S. bank pays a fixed rate of 4.5 percent on the British pounds received and the British bank pays a variable rate equal to LIBOR on the U. S. dollars received. Given the following information, what payment is made to whom at the end of year 2? 0 1 2 LIBOR=4% LIBOR=4.5% LIBOR=5% The U. S. bank pays: A. US $9513.50 million and the British bank pays 25.00 million. B. ￡ 13.50 million and thee British bank pays US $ 25.00 million. C. ￡ 13.50 million and the British bank pays US $ 22.50 million
单选题Which of the following is least likely to appear in a companys proxy statement?
单选题Babu Dhaliwal, CFA, does research about foreign exchange market. The euro per Argentine peso (EUR/ARS) spot rate is 0.1789 and the forward rate is at a discount of 0.27%. The forward rate is closest to: A. 0.1741 B. 0.1784 C. 0.1794
单选题An analyst does research about equity valuation. A company's current annual dividend (D0) of $0.80 is expected to grow at a 20% rate for the next three years and at an 8% rate thereafter. If the required rate of return is 15%, the intrinsic value of the equity is closest to: A. $13.71 B. $16.64 C. $21.33
单选题If the quantity demanded of pears falls by 4% when the price of apples decreases by 3%, then apples and pears are best described as:
单选题Which of the following is NOT a risk factor for a country's risk premium? A. Business risk. B. Financial risk. C. Technology risk.
单选题Which transaction would least likely be classified as an interest rate swap? A. Pay USD fixed, receive U. S. LIBOR. B. Receive AUD fixed, pay NZD floating. C. Receive U. S. fixed, pay U.S. commercial paper.
单选题A bond is currently trading for $109
单选题An investor has a portfolio with 10 percent cash, 30 percent bonds, and 60 percent stock
单选题Mason Webb makes the following statements to his boss, Laine DeWalt about the principles of capital budgeting. Statement 1: Opportunity costs are not true cash outflows and should not be considered in a capital budgeting analysis. Statement 2: Cash flows should be analyzed on an after-tax basis. Should DeWalt agree or disagree with Webb's statements? Statement 1 Statement 2 A. Agree Agree B. Disagree Disagree C. Disagree Agree
单选题An analyst does research about earnings per share and gathers the following information about a company's planned share repurchase using borrowed funds: Before-tax borrowing 11% Marginal tax rate 35% Price / Earnings ratio before share repurchase 13 All else being equal, compared to earnings per share before the repurchase, earnings per share after the repurchase will most likely: A. decrease. B. remain the same. C. increase.
单选题In negotiating a swap, the two counterparties agree to exchange: