admin

1. An investment at 10.47% effective rate compounded monthly is equal to a nominal (annual) rate of: a. 10.99%b. 9.57%c. 10%d. None of the above2. An […]

1. If a bond is paying interest semi-annually then: a. Interest is paid once a yearb. Interest is paid every six monthsc. Interest is paid every […]

1. If the future value annuity factor at 10% and 5 years is 6.1051 calculate the equivalent present value annuity factor a. 6.1051b. 3.7908c. 6.7156d. None […]

1. General Electric (GE) has about 10.3 billion shares outstanding and the stock price is $37.10. The P/E ratio is about 18.3. Calculate the market capitalization […]

1. If the 4-year spot rate is 7% and the 3-year spot rate is 6% what is the one-year forward rate of interest three years from […]

1. Which of the following statements is true? I) The spot interest rate is a weighted average of yields to maturity II) Yield to maturity is […]

1. If a bonds volatility is 10% and the interest rate goes down by 0.75% (points) then the price of the bond: a. Decreases by 10%b. […]

1. A bond with a face value of $1000 has coupon rate of 7% yield to maturity of 10% and twenty years to maturity. The bonds […]

1. Company X has a P/E ratio of 10 and a stock price of $50 per share. Calculate earnings per share of the company. a. $6 […]