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BUS 401 Week 2 Quiz Version b

Nov 28th, 2014
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  3. In this paperwork of BUS 401 Week 2 Quiz Version b you will find the answers on the next questions:
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  6. 1. Beta is a statistical measure of (Points : 1)
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  8. 2. At what rate must $500 be compounded annually for it to grow to $1,079.46 in 10 years? (Points : 1)
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  10. 3. How much money must you pay into an account at the end of each of 20 years in order to have $100,000 at the end of the 20th year? Assume that the account pays 6% per year, and round to the nearest $1. (Points :1)
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  12. 4. Halverson, Inc. just issued $1,000 par 20-year bonds. The bonds sold for $936 and pay interest semi-annually. Investors require a rate of 7.00% on the bonds. What is the amount of the semi-annual interest payment on the bonds? (Points : 1)
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  14. 5. What is the present value of $15,500 to be received 12 years from today? Assume a discount rate of 7.5% compounded annually and round to the nearest $1. (Points : 1)
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  16. 6. Finance theory suggests that the current market value of a bond is based upon which of the following? (Points : 1)
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  18. 7. A typical measure for the risk-free rate of return is the (Points : 1)
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  20. 8. A financial advisor tells you that you can make your child a millionaire if you just start saving early. You decide to put an equal amount each year into an investment account that earns 7.5% interest per year, starting on the day your child is born. How much would you need to invest each year (rounded to the nearest dollar) to accumulate a million for your child by the time he is 35 years old? (Your last deposit will be made on his 34th birthday.) (Points : 1)
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  22. 9. You decide you want your child to be a millionaire. You have a son today and you deposit $15,000 in an investment account that earns 9% per year. The money in the account will be distributed to your son whenever the total reaches $1,000,000. How old will your son be when he gets the money (rounded to the nearest year)? (Points : 1)
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  24. 10. How much money must you pay into an account at the end of each of 20 years in order to have $100,000 at the end of the 20th year? Assume that the account pays 6% per year, and round to the nearest $1. (Points : 1)
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  26. 11. Preferred stock is similar to a bond in the following way (Points : 1)
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  28. 12. A financial advisor tells you that you can make your child a millionaire if you just start saving early. You decide to put an equal amount each year into an investment account that earns 7.5% interest per year, starting on the day your child is born. How much would you need to invest each year (rounded to the nearest dollar) to accumulate a million for your child by the time he is 35 years old? (Your last deposit will be made on his 34th birthday.) (Points : 1)
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  30. 13. The present value of $1,000 to be received in 5 years is ________ if the discount rate is 7.8%. (Points : 1)
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  32. 14. A typical measure for the risk-free rate of return is the (Points : 1)
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  34. 15. The capital asset pricing model (Points : 1)
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  36. 16. Assume that Brady Corp. has an issue of 18-year $1,000 par value bonds that pay 7% interest, annually. Further assume that today's required rate of return on these bonds is 5%. How much would these bonds sell for today? Round off to the nearest $1.
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  38. 17. What is the value of a bond that matures in 5 years, has an annual coupon payment of $110, and a par value of $2,000? Assume a required rate of return of 7%. (Points : 1)
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  40. 18. A corporate bond has a coupon rate of 12%, a yield to maturity of 10.55%, a face value of $1,000, and a mar
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  42. To get this material copy and paste link to browser - https://bitly.com/12BGy2j
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  44. Get yourself a good water bottle to bring to school. Remain hydrated all day. If you have a full schedule and have to skip meals, you should at least make sure you get enough water. Drinking during the day frequently allows you to keep focused on what you're doing. Refilling water bottles is easier with some of the modern water fountains.
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