FIN 100 FINAL EXAM P1
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User
Maria Elisa Cruz
Course
Prin Of Finance
Test
Final Exam Part 1
Started
12/16/13 6:39 PM
Submitted
12/16/13 8:18 PM
Status
Completed
Attempt Score
125 out of 125 points
Time Elapsed
1 hour, 39 minutes out of 2 hours.
Instructions
This final exam consist of 25 multiple choice questions and covers the material in chapters 9 through 13. There are five questions from each chapter and the questions are in chapter order. Be sure you are in the correct Chapter when you take the exam.
· Question 1
5 out of 5 points
When the amount earned on a deposit has become part of the principal at the end of a specified time period the concept is called
Answer
Selected Answer:
compound interest.
Correct Answer:
compound interest.
· Question 2
5 out of 5 points
When compounding more than once a year, the true opportunity costs measure of the interest rate is indicated by the:
Answer
Selected Answer:
effective annual rate
Correct Answer:
effective annual rate
· Question 3
5 out of 5 points
The future value of a dollar ________ as the interest rate increases and ________ the farther in the future an initial deposit is to be received.
Answer
Selected Answer:
increases; increases.
Correct Answer:
increases; increases.
· Question 4
5 out of 5 points
For positive interest rates, the present value interest factor is
Answer
Selected Answer:
always less than 1.0.
Correct Answer:
always less than 1.0.
· Question 5
5 out of 5 points
The future value of $200 received today and deposited at 8 percent for three years is
Answer
Selected Answer:
$252.
Correct Answer:
$252.
· Question 6
5 out of 5 points
A current yield on a corporate bond is calculated as:
Answer
Selected Answer:
coupon interest amount divided by the current price
Correct Answer:
coupon interest amount divided by the current price
· Question 7
5 out of 5 points
A bond’s value is the same as its principal amount when the coupon rate is:
Answer
Selected Answer:
the same as the required rate of return
Correct Answer:
the same as the required rate of return
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· Question 8
5 out of 5 points
A bond that can be changed into a specified number of shares of the issuer’s common stock is called a:
Answer
Selected Answer:
convertible bond
Correct Answer:
convertible bond
· Question 9
5 out of 5 points
To accurately compare the rate of return on one investment with another, they should be:
Answer
Selected Answer:
measured over equal time periods
Correct Answer:
measured over equal time periods
· Question 10
5 out of 5 points
An individual or organization that represents the bondholders to ensure the indenture’s provisions are respected by the bond issuer is called a (n):
Answer
FIN 100 FINAL EXAM P2
FIN 100 FINAL EXAM P1
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