Corporate Finance #2 Questions and Correct Answers & Latest Updated
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Course
Corporate Finance
Institution
Corporate Finance
The specified date on which the principal amount of a bond is repaid is called the bond's:
A. coupon
B. face value
C. maturity
D. yield to maturity
E. coupon rate
o :## C.
A bond with a face value of $1000 that sells for less than $1000 in the market is called a
_______ bond.
A. par
B. d...
Corporate Finance #2 Questions and Correct
Answers & Latest Updated
The specified date on which the principal amount of a bond is repaid is called the bond's:
A. coupon
B. face value
C. maturity
D. yield to maturity
E. coupon rate
o :## C.
A bond with a face value of $1000 that sells for less than $1000 in the market is called a
_______ bond.
A. par
B. discount
C. premium
D. zero coupon
E. floating rate
Master01: DO NOT COPY AND PASTE!! August 25, 2024 Latest Update
, 2|Page: 2024/2025 Grade A+
o :## B.
A bond with semi-annual interest payments, all else equal, would be priced ______ than
one with annual interest payments.
A. higher
B. lower
C. the same
D. it is impossible to tell
E. either higher or the same
o :## B.
The Fisher formula is expressed as _______ where R is the nominal rate, r is the real rate
and h is the inflation rate.
A. 1+r = (1 + R) / (1+ h)
B. 1+r = (1 + R) x (1+ h)
C. 1+h = (1 + r) / (1+ R)
D. 1+R = (1 + r) / (1+ h)
E. 1+R = (1 + r) x (1+ h)
o :## E.
Master01: DO NOT COPY AND PASTE!! August 25, 2024 Latest Update
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