FIN 370 Week 3 Assignment Help | Quiz | University Of Phoenix
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- 03 Dec 2019
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FIN 370 Week 3 Assignment Help | Quiz | University Of Phoenix
1.
Which
of the following is NOT a factor that determines the coupon rate of a company's
bonds?
Multiple
Choice
o
The term of the loan.
o
All of the options are factors that
determine the coupon rate of a company's bonds. Correct
o
The level of interest rates in the overall
economy at the time.
o
The amount of uncertainty about whether
the company will be able to make all the payments.
2.
A
3.75 percent TIPS has an original reference CPI of 175.8. If the current CPI is
207.7, what is the current interest payment and par value of the TIPS? (Assume
semi-annual interest payments and $1,000 par value.)
Multiple
Choice
o
$1,181.46, $22.15, respectively
o
$1,181.46, $37.50, respectively
o
$1,000, $18.75, respectively
o
$1,000, $37.50, respectively
3.
Calculate
the price of a zero coupon bond that matures in five years if the market
interest rate is 7.50 percent. (Assume semi-annual compounding and $1,000 par
value.)
Multiple
Choice
o
$1,000.00
o
$696.57
o
$962.50
o
$692.02
4.
Which
of the following bonds carry a significant risk that the issuer will not make
current or future payments?
Multiple
Choice
o
Credit quality risk bonds
o
Interest rate risk bonds
o
Liquidity rate risk bonds
o
Junk bonds
5.
Under
which conditions will an investor demand a larger return (yield) on a bond?
Multiple
Choice
o
None of the conditions will cause an
increase in the bond's yield.
o
Interest rates decrease due to the decline in
inflation.
o
The bond issue is downgraded from A to
BBB.
o
The bond issue is upgraded from A to AA.
6.
Which
of the following is an electronic stock market without a physical trading
floor?
Multiple
Choice
o
Mercantile Exchange
o
New York Stock Exchange
o
Nasdaq Stock Market
o
American Stock Exchange
7.
Individuals
who use their own stock inventory and capital to buy and sell the stocks they
represent are called:
Multiple
Choice
o
market makers.
o
brokers.
o
investors.
o
none of the options.
8.
At
your discount brokerage firm, it costs $9.95 per stock trade. How much money do
you need to buy 200 shares of General Electric (GE), which trades at $45.19?
o
$9,038.00
o
$9,047.95
o
$4,595.95
o
$4,528.95
9.
If
Target Corp. (TGT) recently earned a profit of $6.07 earnings per share and has
a P/E ratio of 16.5. The dividend has been growing at a 10 percent rate over
the past few years. If this growth continues, what would be the stock price in
five years if the P/E ratio remained unchanged? What would the price be if the
P/E ratio increased to 18 in five years?
Multiple
Choice
o
$259.78, $283.39 respectively
o
$161.30, $175.96 respectively
o
$100.16, $109.26 respectively
o
$261.30, $275.96 respectively
10.
International
Business Machines (IBM) has earnings per share of $6.85 and a P/E ratio of
15.19. What is the stock price?
Multiple
Choice
o
$2.22
o
$0.45
o
$45.09
o
$104.05
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