QUESTIONS WITH 100% PASSED
ANSWERS.
1 of 100
Term
QUESTION 20 EXAM 2 ADD TO WORD DOC
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C
d. 71%
Explanation:
This investor's return over the past three months was 14.29%, or ($8 − $7)/$7 =
, $1/$7 = 0.1429.
Annualized return = (1 + 0.1429)4 − 1 = (1.1429)4 − 1 = 1.7060 − 1 = 0.7060, or about
71%
B
b. Equities
Explanation: The three major asset classes for retirement portfolios are
bonds, equities, and money market securities. Real estate is considered to be
an
alternative investment.
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2 of 100
Term
Myriam is considering purchasing a 20-year bond that is selling for
$983. The bond can be called in 4 years at $1,030. What is the
YTC for this bond if it has a 4% coupon, paid semiannually?
a. 4.13%
b. 4.99%
c. 5.16%
d. 5.18%
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, c. 5.16%
Explanation:
b. 5.2%
P/YR = 2
PV = -$983.00
Explanation:
N=8
Current yield = $65/$1250 = 5.2%
FV = $1,030.00
PMT = $20
I/YR = 5.16
b. 4.82%
Explanation:
b. 7.84%
P/YR = 2
Explanation: The real rate of return =
PV = -$1,150.00
[(1.10/1.02) − 1] × 100 = [1.0784 − 1] ×
N=6
100 = 0.0784 × 100 = 7.84%
FV = $1,040.00
PMT = $45
I/YR = 4.82
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, 3 of 100
Term
The decision of whether to go public is an important one for private
companies. Which of the following statements is (are) a
disadvantage of going public?
I. Loss of some control over business operations
II.The obligation to file annual and quarterly reports to the SEC
a. I only
b. II only
c. Both I and II
d. Neither I nor II
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c. Both I and II
Explanation: Companies that go public have less control over their business
operations and must file reports to the SEC.
a. reducing inequality.
Explanation: The goals of regulatory oversight are fostering transparency,
integrity, and accuracy.
a.the asked price plus accrued interest.
Explanation: The total price of a bond is the asked price plus accrued interest.