How are future values affected by changes in interest rates? - Answer-The lower the interest rate, the larger the future value will be
We call the process of earning interest on both the original deposit and on the earlier interest payments: - Answer-compounding
the process of figuring out ho...
how are future values affected by changes in inter
Escuela, estudio y materia
FIN 301
FIN 301
Vendedor
Seguir
lectknancy
Comentarios recibidos
Vista previa del contenido
FIN 301 Midterm Exam Questions with
Latest Update
How are future values affected by changes in interest rates? - Answer-The lower the
interest rate, the larger the future value will be
We call the process of earning interest on both the original deposit and on the earlier
interest payments: - Answer-compounding
the process of figuring out how much an amount that you expect to receive in the future
is worth today is called: - Answer-discounting
A deposit of $500 earns the following interest rates: 5 percent in the first year, 6 percent
in the second year, and 8 percent in the third year. What will be the third year future
value - Answer-601.02
What is the value in year 3 of a $500 cash flow made in year 5 when interest rates are 6
percent? - Answer-445
You invested $5,000 in the stock market one year ago. Today the investment is valued
at $4,500. What Return did you earn? What return would you need to get next year to
break even overall? - Answer--10 percent, 11.11 percent, respectively
the simple form of an annualized interest rate is called the annual percentage (APR).
The effective annual rate(EAR) is a: - Answer-more accurate measure of the interest
rate paid for monthly compounding
Once firms issue financial instruments in primary markets, these same stocks and
bonds are then traded in which of these? - Answer-Secondary markets
Which of the following reasons is why bonds are known as fixed income investments? -
Answer-Investors know how much they will receive in interest payments.
Regarding a bond's characteristics, which of the following is the principal loan amount
that the borrower must repay? - Answer-Par or face value
Which of the following determines the dollar amount of interest paid to bondholders? -
Answer-coupon rate
Which of the following is true regarding U.S. Government Agency Securities? - Answer-
They do not carry the federal governments full faith and credit guarantee
which of the following is a true statement? - Answer-if interest rates fall, all bonds will
increase in price
Los beneficios de comprar resúmenes en Stuvia estan en línea:
Garantiza la calidad de los comentarios
Compradores de Stuvia evaluaron más de 700.000 resúmenes. Así estas seguro que compras los mejores documentos!
Compra fácil y rápido
Puedes pagar rápidamente y en una vez con iDeal, tarjeta de crédito o con tu crédito de Stuvia. Sin tener que hacerte miembro.
Enfócate en lo más importante
Tus compañeros escriben los resúmenes. Por eso tienes la seguridad que tienes un resumen actual y confiable.
Así llegas a la conclusión rapidamente!
Preguntas frecuentes
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
100% de satisfacción garantizada: ¿Cómo funciona?
Nuestra garantía de satisfacción le asegura que siempre encontrará un documento de estudio a tu medida. Tu rellenas un formulario y nuestro equipo de atención al cliente se encarga del resto.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller lectknancy. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for $10.49. You're not tied to anything after your purchase.
