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A B Which one of the following statements is correct? The EAR is always greater than...
5. Which of the following bank accounts has the highest effective annual return (EAR)? An account...
5. Which of the following bank accounts has the highest effective annual return (EAR)? An account that pays 8% nominal interest with monthly compounding An account that pays 8% nominal interest with annual compounding An account that pays 7% nominal interest with daily (365-day) compounding An account that pays 7% nominal interest with monthly compounding a. b. C. d. 6. Which of the following statements regarding a 30-year monthly payment amortized mortgage with a fixed nominal interest rate of 10%...
Say that you purchase a house for $264,000 by getting a mortgage for $230,000 and paying...
Say that you purchase a house for $264,000 by getting a mortgage for $230,000 and paying a down paymegt of $34,000. If you get a 20-year mortgage with an interest rate of 6 percent, what are the monthly payments? (Round your finel answer to 2 decimal places.) Рaуment What would the loan balance be in five years? (Use a payment value rounded to 2 decimal places. Round your final answer to 2 decimal places.) Loan balance If the house appreciates...
Which of the following is NOT correct? Multiple Choice Other things being equal, the more frequent...
Which of the following is NOT correct? Multiple Choice Other things being equal, the more frequent the compouding period, the higher the APR. 0 The arguement that 900 dollars today worth more than 900 dollars one year from now is correct only when interest rate is positive. 0 Cash flows occuring in different periods should not be compared unless the flows have been discounted to a common date. 0 Other things being equal, the more frequent the compouding period, the...
Which of the following statements is CORRECT? O 10-year, zero coupon bonds have more reinvestment risk...
Which of the following statements is CORRECT? O 10-year, zero coupon bonds have more reinvestment risk than 10-year, 10 % coupon bonds OA 10-year, 10% coupon bond has less reinvestment risk than a 10-year, 5 % coupon bond (assuming all else equal). The total (rate of) return on a bond during a given year is the sum of the coupon interest payments received during the year and the change in the value of the bond from the beginning to the...
which option is correct without explanation 11 If a company borrows $100 000 at an interest...
which option is correct without explanation
11 If a company borrows $100 000 at an interest rate of 20% per year, compounded semi-annually and makes payments of $15,000 every 6 months, the length of time required for the company to pay off the loan is closest to A. 7 years B, 9 years C. Less than 6 years D. More than 10 years 12.lfi-10%, the value ofXìn the following CFD is closest to: A, 826 В. 1085 C, 268 D....
Circle the correct answer. Which of the following statements best describes what would be expected to...
Circle the correct answer. Which of the following statements best describes what would be expected to happen as you randomly add stocks to your portfolio? a. Adding more stocks to your portfolio reduces the portfolio's company- specific risk. b. Adding more stocks to your portfolio reduces the beta of your portfolio. c. Adding more stocks to your portfolio increases the portfolio's expected return. d. Statements a and care correct. e. All of the statements above are correct. Frank Lewis has...
ysb A loan that compounds interest monthly has an EAR of 14.40 percent. What is the...
ysb A loan that compounds interest monthly has an EAR of 14.40 percent. What is the APR? 919 no 2le ns notni s2.8 ineng yd ynotnevni ati allo evods to ono. B. 13.96 percent D. 13.53 percent A. 14.10 percent C. 13.59 percent 6.You just turned 21 years old and want to retire when you turn 65. You expect to live for 25 years after retirement and want to withdraw $8,000 per month in retirement, starting one month after your...
5) 5) Which one of the following variables is the exponent in the present value formula?...
5) 5) Which one of the following variables is the exponent in the present value formula? A) Present value B) Interest rate C) Number of time periods D) Future value E) There is no exponent in the present value formula 6) 6) What are the distributions of either cash or stock to shareholders by a corporation called? A) Coupon payments B) Retained earnings C) Capital payments D) Dividends E) Diluted profits 7) Suppose the first comic book of a classic...
1. Which of the following statements is most correct? me money is readily available and the...
1. Which of the following statements is most correct? me money is readily available and the cost of retained earnings is usually a lot cheaper than the cost of debt financing higher . Firms often call in bonds that can be reissued at lower interest rates. Thus, bonds seling at a significant premium discount are most eligible to be called by the issuing company. c. Il a company's tax rate increases but the yield to maturity of its non-callable bonds...
4.Which one of the following statements about the approach to bond pricing is NOT true? Select...
4.Which one of the following statements about the approach to bond pricing is NOT true? Select one: A. To calculate a bond's price, one needs to calculate the present value of the bond's expected cash flows. B. The value, or price, of any asset is the future value of its cash flows. 6.Which one of the following statements is NOT true? Select one: A. The yield to maturity of a bond is the discount rate that makes the present value...
5. Which of the following bank accounts has the highest effective annual return (EAR)? An account that pays 8% nominal interest with monthly compounding An account that pays 8% nominal interest with annual compounding An account that pays 7% nominal interest with daily (365-day) compounding An account that pays 7% nominal interest with monthly compounding a. b. C. d. 6. Which of the following statements regarding a 30-year monthly payment amortized mortgage with a fixed nominal interest rate of 10%...
Say that you purchase a house for $264,000 by getting a mortgage for $230,000 and paying a down paymegt of $34,000. If you get a 20-year mortgage with an interest rate of 6 percent, what are the monthly payments? (Round your finel answer to 2 decimal places.) Рaуment What would the loan balance be in five years? (Use a payment value rounded to 2 decimal places. Round your final answer to 2 decimal places.) Loan balance If the house appreciates...
Which of the following is NOT correct? Multiple Choice Other things being equal, the more frequent the compouding period, the higher the APR. 0 The arguement that 900 dollars today worth more than 900 dollars one year from now is correct only when interest rate is positive. 0 Cash flows occuring in different periods should not be compared unless the flows have been discounted to a common date. 0 Other things being equal, the more frequent the compouding period, the...
Which of the following statements is CORRECT? O 10-year, zero coupon bonds have more reinvestment risk than 10-year, 10 % coupon bonds OA 10-year, 10% coupon bond has less reinvestment risk than a 10-year, 5 % coupon bond (assuming all else equal). The total (rate of) return on a bond during a given year is the sum of the coupon interest payments received during the year and the change in the value of the bond from the beginning to the...
which option is correct without explanation
11 If a company borrows $100 000 at an interest rate of 20% per year, compounded semi-annually and makes payments of $15,000 every 6 months, the length of time required for the company to pay off the loan is closest to A. 7 years B, 9 years C. Less than 6 years D. More than 10 years 12.lfi-10%, the value ofXìn the following CFD is closest to: A, 826 В. 1085 C, 268 D....
Circle the correct answer. Which of the following statements best describes what would be expected to happen as you randomly add stocks to your portfolio? a. Adding more stocks to your portfolio reduces the portfolio's company- specific risk. b. Adding more stocks to your portfolio reduces the beta of your portfolio. c. Adding more stocks to your portfolio increases the portfolio's expected return. d. Statements a and care correct. e. All of the statements above are correct. Frank Lewis has...
ysb A loan that compounds interest monthly has an EAR of 14.40 percent. What is the APR? 919 no 2le ns notni s2.8 ineng yd ynotnevni ati allo evods to ono. B. 13.96 percent D. 13.53 percent A. 14.10 percent C. 13.59 percent 6.You just turned 21 years old and want to retire when you turn 65. You expect to live for 25 years after retirement and want to withdraw $8,000 per month in retirement, starting one month after your...
5) 5) Which one of the following variables is the exponent in the present value formula? A) Present value B) Interest rate C) Number of time periods D) Future value E) There is no exponent in the present value formula 6) 6) What are the distributions of either cash or stock to shareholders by a corporation called? A) Coupon payments B) Retained earnings C) Capital payments D) Dividends E) Diluted profits 7) Suppose the first comic book of a classic...
1. Which of the following statements is most correct? me money is readily available and the cost of retained earnings is usually a lot cheaper than the cost of debt financing higher . Firms often call in bonds that can be reissued at lower interest rates. Thus, bonds seling at a significant premium discount are most eligible to be called by the issuing company. c. Il a company's tax rate increases but the yield to maturity of its non-callable bonds...
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